Fixed Income Again

[John K. Taber]

Doug Laidlaw wrote:

> That is what I would have done, but perhapps slightly differently.  One of the 
> first principles of accounting is that you don't change the figures - you 
> enter a journal.  An auditor needs to see exactly what you have done.
> 
> I might have done this:
> 
> Asset: Treasury Bills : $10 000.00
> Cash: $ 9 950.00
> Discount on bills: $50.00
> 
> With both, you have an account containing your accumulated discounts.  
> Whichever way you go depends on your tax situation.  Is the $50 taxable 
> income?  If so, Dawn's setup would do.
> 
> HTH,
> 
> Doug.

Dawn's will do. The discount is considered accrued interest and is
taxable (unless de minimus I expect).

The problem is moot now, but after thinking about it for a while, the
real question isn't the accounting but how I think about treasuries vs
how GnuCash doesn't treat them.

I think of treasuries as an INVESTMENT. Treated as an asset that isn't
an investment, my treasuries are not reported in GnuCash Investment
Report. The Investment Report considers only mutual funds and stocks as
investments, which I find quirky.

Quicken has the same problem as I recall. Years ago, Quicken advised
entering bonds as "shares" consisting of hundreds or thousands, or
whatever unit is convenient for the user. That way one can enter a
"share" price if desired. 

I can do the same in GnuCash, just pretend they are "stocks" so that
they show up in the Investment Report, if that's what I want.

It's moot. 

John K. Taber