13 Jul 2002 01:09:29 +0100
>>>>> "Dale" == Dale Alspach <firstname.lastname@example.org> writes:
Dale> This has been discussed on this list. Gnucash is cheating
Dale> when it revalues assets by using the price editor. When the
Dale> price (value) goes up the gain should be put into an
Dale> unrealized gain income account.
I presume you mean that the money comes from this (unrealized gain
income) account. Where does it go to? I guess the stock account, but
(i) I'm not sure, and (ii) this doesn't make sense in Gnucash right
now, because stock accounts only go up and down by units.
Dale> When the item is sold
Presumably a transfer from the stock account to the brokerage account?
Dale> then these unrealized gains and losses should be reconciled
Dale> and the net transferred to a realized gain or loss
Except for tax considerations, is this just the same as reconciling
income and expenses into an equity account at year end?
What kind of account should the realized gain/loss one be?
I A N A A, but on a related theme, I've noticed that there's a kind of
duality between income/expense and variably-valued assets.
To see what I mean, consider Food and Salary. Normally, you probably
have Food as an expense and Salary as income. But another way of
thinking would be to treat Food expenditure as buying a unit of the
Yourself stock, and Salary as the cash derived from selling this unit.
Is this a helpful model at all? (I daresay it's bread and butter to
anyone who's studied accountancy.)