Question on how to record share losses

[TrackerChamp]

Hi,

> On Wed, Aug 01, 2001 at 03:53:04PM +0200, TrackerChamp wrote:
> > 2) In June, you realize (by using the price editor), that the share w=
ent
> > up to 11$ a piece. So you have a (unrealized) gain of 100$ because yo=
ur
> > shares are now worth 1100$ The price editor (and Gnucash) shows you t=
his
> > in the balance for your shares. They are now worth $1100. BUT there i=
s no
> > booking that actually says, that you had an (unrealized) gain of $100=
=2E If
> > you open the wins/losses report, there should somewhere be a win of $=
100.
> > This could be an income account called "share wins".
>
> Income represents money received from outside sources.  You aren't
> actually receiving any money when the paper value of your stock goes
> up, so it's not appropriate to represent it in an income account.
> Unrealized gains should show on a balance sheet, but not as ledger
> entries for your income and expense accounts.

I agree with you. But why does the online help example with the painting =
do=20
exactly the opposite? If the painting you bought for 5000$ is revalued an=
d=20
found to be worth $5500, the example says to book the $500 as unrealized =
gain=20
in an income account! So, although you actually don't have the additional=
=20
$500 in your hands, it should (and probably does because you set the acco=
unt=20
type to be income) appear in a gain/loss balance.
The only thing I am pointing out, that either the online help example is=20
chosen confusingly or the unrealized gains of assets other than funds or=20
share (i.e. the painting) are treated differently from the unrealized=20
gains/losses from funds. This makes no sense to me. Although - I must rep=
eat=20
- I am not an accountant.
To make it short: there should be some sort of price-editor for assets as=
=20
well. This could be handy for depreciation as well. Or am I just terribly=
=20
confused?

Greetings,

=09Marc


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