Australia Accounting for share price fluctuation at year end

[telstrabloke]

Hey everyone, first time post. Im an accounting student and have a question about a company shares.

For example, company buys 1000 shares at $2 per share in may. By 30 June, year end, the share price has fallen to $1.50 per share. There was no other purchases or dividends. Is there an adjusting entry required?

Thanks

 

[Kinlejus]

Adjusting entry would be, in my opinion, only when the company actually SOLD the shares, then it would be recorded as either loss/gain on the investment

 

[telstrabloke]

How about recording it at fair value?

 

[bklynboy]

How about recording it at fair value?

FV is used for the investor who purchase the stock and captured thru equity as an unrealized gain or loss.