Unrealized/Realized Gains and Losses

Robin Coon robin@pjrc.com
Wed, 01 Aug 2001 08:59:20 -0700


I can only speak about US GAAP (Generally Accepted Accounting
Principals)

First on Income.
Income is not recognized until it is (1) Realized or realizable and (2)
Earned.  So if the value of your assets (your stock, painting, etc)
increases, but you to no realize the gain, you don't get it on your
income statement.

Personal Financial Statements are prepared to present the current fair
market value of assets, liabilities, and net worth of an individual - at
the date of the financial statements.  Assets and liabilities are both
presented at the current fair market value, so Net Worth is presented at
fair market value.

I can do some research on the appropriate handling of the transactions,
but I have to leave town for a few days.

Robin
"I'm an accountant, not an engineer! I cannot break the laws of GAAP"