Unrealized/Realized Gains and Losses

Linas Vepstas linas@linas.org
Thu, 2 Aug 2001 16:08:02 -0500


On Thu, Aug 02, 2001 at 03:43:56PM -0500, Bill Gribble was heard to remark:
> On Thu, Aug 02, 2001 at 03:24:20PM -0500, Linas Vepstas wrote:
> > Umm, this is similar to the earlier 'cash flow' argument.  How can the
> > report generator tell apart 'unrealized' loss from 'ordinary depreciation' 
> > if there isn't  at least have a checkbox on the account?  (the alternative
> > is to have a checkbox on each transaction). 
> 
> So, in short, the report generator can tell depreciation from
> unrealized loss because in depreciation the actual value of the asset
> is decreased by transactions to an expense account.  In unrealized
> loss the market value of the asset is decreased by a change in the
> market price of the asset, but there's no income or expense associated
> with it because no transaction or financial event takes place.

OK, so then how does one go about recording an unrealized gain or loss?
Are you trying to say that the *only* way to record an unrelized
gain/loss is to record a new price?   Or rather, that this is the only
way that gnucash *should* support it?

I provided a suggestion for how to 'fix' gnucash, but you seem to be
rejecting it.  Do you have a better solution?

--linas

-- 
I'm very PUBLIC-MINDED, I'm helping a NIGERIAN get his $25,000,000 back!