accounting for stock trades

Neil Jerram neil@ossau.uklinux.net
03 Jan 2003 23:37:25 +0000


>>>>> "Herbert" == Herbert Thoma <tma@iis.fhg.de> writes:

    Herbert> Derek Atkins schrieb:
    >> 
    >> Herbert Thoma <tma@iis.fhg.de> writes:
    >> 
    >> > Unrealized gain/loss is no "real" money. But realized gain is actual
    >> > income which I have to pay tax for, realized loss reduces my tax
    >> > payment. So I have to account for realized gain/loss.
    >> 
    >> Sure, but who claims you need to account for it _BY A SPLIT_?

    Herbert> Because I want to see the income/expense in an income/expense account,
    Herbert> don't I need a split for this?

This probably won't help the argument much, but I find it
interesting...

Consider a simple system where you buy food to eat and do a job.  So,
in Gnucash terms, all you have is Expense:Food and Income:Salary (oh,
and Assets:Cash).

Now see it another way.  Buying (and eating) food is investing in the
stock known as Yourself.  Receiving a salary is selling some of that
stock.  In this view the accounts are just Assets:Yourself and
Assets:Cash.  Hey, no income/expense accounts!

It seems to me that this kind of duality is always applicable.  It's
just a matter of choice (+ convention + accounting rules etc.) which
way you represent things.

(IANAA :-)

        Neil