Holding gains are generally defined as increases in the replacement costs of the assets held during a given period.
[1] Holding gains and losses accrue to the owners of assets and liabilities purely as a result of holding the assets or liabilities over time, without transforming them in any way.
Thus, by merely holding the wine in the inventory, the assets of the company have risen in value.
Holding gains are most frequently used in inflation accounting and income measurement.
Holding gains can be realized (e.g., sold goods) or unrealized (e.g.