Account type choice

[Doug Laidlaw]

Yes, I understand that for accounting purposes, it is either a current asset 
or a long-term asset, depending on how long it has to run.  Australian 
practice is that anything with 12 months or less to run is a current asset.  
But the asset category in gnucash allows for revaluation of the asset, which 
is irrelevant in this case.  I think that I might leave it as a bank account, 
while acknowledging that it is really incorrect.  It is part of my personal 
accounts, not business, so it doesn't need to be classified for a balance 
sheet or any similar purpose.

BTW, what do accountants do when the maturity date of a long-term asset gets 
closer than 12 months?  Do they change its category in the books?  I am a 
lawyer, not an accountant, so I haven't learned these finer points.

Thanks,

Doug.

On Monday 05 November 2001 02:12, you wrote:
> This is a current asset.
>
> An interest bearing note will either be a current assets - to become liquid
> within
> 1 year, or a non-current assets - will not become liquid within a year.
>
> As you receive interest on this account, you would make a journal entry to
> debit the asset account and credit interest income.
>
> Does this make sense to you?
>
> Robin
>
> Doug Laidlaw wrote:
> > I might be explaining too much here, but the Aussie investment scene is
> > so different from the U.S.
> >
> > I have an investment with a finance company.  We call it "bonds" it is
> > basically either a debenture - a loan of my money secured on the assets
> > of the company, or "unsecured notes", which do not have any security. 
> > These can sometimes be traded on the Stock Exchange, but I am not
> > interested in this. For accounting purposes, it is an interest-bearing
> > loan.  There doesn't seem to be a Gnucash account really suited to this. 
> > The nearest is to set up an ordinary Bank account.  Is this right?
> >
> > Doug.
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