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I would think that if losses were not yet recorded then these should be recorded in the equity section of the balance sheet. If you could elaborate a little more on what the "trading trust" is I could give you a more detailed answer.
Based on your question though, it sounds like you are preparing financials for a trust and prior year losses are not recorded. As such, the losses would be recorded in the equity section reducing the Net Asset Value of the trust. Remember that the assets should be be reduced as well to reflect the losses.
I hope this helps. Please let me know if you have any follow up questions and I will get back to you as soon as I can.