[GNC] Australian Initial Setup Q's

stephen.m.butler51 stephen.m.butler51 at gmail.com
Sun Nov 25 14:54:45 EST 2018


This would be in the domain of a Fixed Assets module (which does not exist in GNC).Sent from my Verizon, Samsung Galaxy smartphone
-------- Original message --------From: David Cousens <davidcousens at bigpond.com> Date: 11/25/18  05:46  (GMT-08:00) To: gnucash-user at gnucash.org Subject: Re: [GNC] Australian Initial Setup Q's Your Home Inventory is presumably an detailing of your personal assetsrecording their current or market value. How you set them up wil to some extent depend on your purpose in doing soand whether those assets are the subject of Capital Gains Tax or not. InAustralia your principle place or residence is not yet subject to capitalgains tax but other assets you own, investment properties, cars, boats maybe. In this case you need to preserve in your accounts some record of theoriginal cost of the asset, changes in its current/market value such thatits current value is recorded. Presumably most of these assets are long termassets which you have no intention to sell within the current accountingperiod so they would normally be recorded as subaccounts of Assets:FixedAssets. See https://www.gnucash.org/docs/v3/C/gnucash-guide/accts-oa12.htmlOne possible procedure is to create a placeholder subaccount for each assetyou wish to record. That placeholder sub-account would in turn have twosubaccounts which sum into the placeholder. Assuming the asset is a housefor example the placeholder account would be Assets:Fxed Assets:House. thefirst subaccount could be named Assets:Fixed Assets:House:Cost Base. Youwould use an initial transaction to record either the purchase of the assetwith an appropriate transfer of funds, creation of a liability for any loanor if you already own the house outright use Equity:Opening Balances for thetransfer account in this initial transaction.The second sub-account could be named Assets:FixedAssets:House:ChangesInMarketValue.  you would record increase or decreasesin the market valueof the house.  The second split/transfer account  forsuch transactions would be another equity accountEquity:UnrealizedGainsOrLosses.The account Assets:Fixed Assets:House being the sum of these, records thecurrent market value of the House asset. The transactions required on salearea a final adjustment to bring the asset value to its actual market valueat sale before recording the transactions of the sale itself. A secondtransaction (or additional splits in the sale transaction) records thetransfer of the value from the Equity:UnrealizedGainsOrLosses to either anIncome account which records taxable income if the item was subject to CGTor untaxable income if it does not. E.g something likeIncome:Taxable:CapitalGains if subject to CGT orIncome:Non-Taxable:CapitalGains if not.A similar approach can be used for depreciation as discussed inhttps://www.gnucash.org/docs/v3/C/gnucash-guide/chapter_dep.htmlYou would need to adjust account names to suit your particular purpose. Theabove is not accounting advice per se merely an indication of an approachwhich might meet your needs. If it is not clear and there are any taxationand/or legal implications it would be advisable to seek advice from apractising accountant in your area.David Cousens-----David Cousens--Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html_______________________________________________gnucash-user mailing listgnucash-user at gnucash.orgTo update your subscription preferences or to unsubscribe:https://lists.gnucash.org/mailman/listinfo/gnucash-userIf you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.-----Please remember to CC this list on all your replies.You can do this by using Reply-To-List or Reply-All.


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