Value Change

Value change is the difference between the value of an asset or liability at two different points in time. It can be positive or negative, and it can be caused by a variety of factors, such as changes in the market price of the asset, changes in the interest rate, or changes in the exchange rate.

In the context of financial reporting, value change is often referred to as "unrealized gain" or "unrealized loss." An unrealized gain occurs when the value of an asset increases between the time it is purchased and the time it is sold. An unrealized loss occurs when the value of an asset decreases between the time it is purchased and the time it is sold.

Unrealized gains and losses are not recognized in the income statement until the asset is sold. However, they are reported in the balance sheet as part of the "other comprehensive income" section.

The value change of an asset can also be used to calculate the return on investment (ROI). ROI is a measure of the profitability of an investment, and it is calculated by dividing the net profit from the investment by the initial investment.

The value change of an asset can be a useful tool for investors and financial analysts. It can help them to track the performance of their investments and to make informed decisions about future investments.