Stock transactions
Neil Jerram
neil@ossau.uklinux.net
13 Jul 2002 01:09:29 +0100
>>>>> "Dale" == Dale Alspach <alspach@math.okstate.edu> writes:
Dale> This has been discussed on this list. Gnucash is cheating
Dale> when it revalues assets by using the price editor. When the
Dale> price (value) goes up the gain should be put into an
Dale> unrealized gain income account.
I presume you mean that the money comes from this (unrealized gain
income) account. Where does it go to? I guess the stock account, but
(i) I'm not sure, and (ii) this doesn't make sense in Gnucash right
now, because stock accounts only go up and down by units.
Dale> When the item is sold
Presumably a transfer from the stock account to the brokerage account?
Dale> then these unrealized gains and losses should be reconciled
Dale> and the net transferred to a realized gain or loss
Dale> account.
Except for tax considerations, is this just the same as reconciling
income and expenses into an equity account at year end?
What kind of account should the realized gain/loss one be?
I A N A A, but on a related theme, I've noticed that there's a kind of
duality between income/expense and variably-valued assets.
To see what I mean, consider Food and Salary. Normally, you probably
have Food as an expense and Salary as income. But another way of
thinking would be to treat Food expenditure as buying a unit of the
Yourself stock, and Salary as the cash derived from selling this unit.
Is this a helpful model at all? (I daresay it's bread and butter to
anyone who's studied accountancy.)
Neil