[Patch] reworked advanced-portfolio.scm

[Andrew Sackville-West]

On Wed, 22 Feb 2006 10:26:57 -0700
Mark Johnson <mrj001 at shaw.ca> wrote:

> Andrew Sackville-West wrote:
> 
> >On Tue, 21 Feb 2006 19:14:33 -0700
> >Mark Johnson <mrj001 at shaw.ca> wrote:
> >  
> >
> >>As far as lots on hand go, is it first-in-first-out or 
> >>first-in-last-out?  Does this vary from country to country?
> >>    
> >>
> >
> >I know this varies. I think in the US (been too long since I held stock) you can decide either way and of course the advantage of one over the other varies depending on who's writing the tax laws this year. 
> >
> >This could get really complicated. I guess the report shouldn't even show money-in or money out, just a cost basis for the shares, current value, gain and return. Then the basis column makes sense regardless of the method used for calculation. thoughts?
> >
> >A
> >
> Those four columns for the report seem sensible to me.
> 
> I am concerned about the statement:  "the basis column makes sense regardless of the method used for calculation".
> 
> 
> The value in the cost basis column depends upon whether the cost basis 
> is an average, FIFO, or LIFO.  For example:
> buy 1:  100 shares at $10.00
> buy 2:  100 shares at $11.00
> sell: 100 shares at $12.00
> 
> Now, on an average basis, for the sale, my cost basis per share is 
> $10.50, and my gain per share $1.50.  On a FIFO basis, my per-share cost 
> basis for the sale is $10.00; my gain is $2.00 per share.  On a LIFO 
> basis, my per share cost basis is $11.00; my gain is $1.00 per share.
> 
> What remains after the sale?  I have 100 shares.  On an average basis, 
> my cost is $10.50 per share.  On a FIFO basis, my cost is $11.00.  On a 
> LIFO basis, my costs is $10.00.
> 
> Both the cost basis and the gain columns are a function of the method 
> chosen for calculating capital gains.

you misunderstand me there. i merely meant that a basis column is the right information to provide, as opposed to moneyin/moneyout, regardless of what method is used to calculate basis... seems to me that moneyin/moneyout is really of no use and may provide misleading information? I suppose its nice to see though that you've pulled $x.xx out of the stock over time. meh. maybe all three should be in there. I can always put in a display option for the various columns.

A

> 
> Mark
> 
> 
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