[GNC] Stock account type "child account" under Equity account type "parent account".

[jason]

Morning, David.


David Cousens wrote
> Your company, if it trades in its own stock  (this is illegal  in
> many/most jurisdictions although individuals who run a company may own
> stock in the company)

*Would you like to clarify "trades in its own stock"? Is this not limited to
"issuing stock to get cash" and grant stock options to employee (possibily
substitute of cash as wages)?*

----

I have a dream. To own a company of my own making with tax compliance in
mind. Thus, I would have to record transactions appropriately.

*1. Stock split to issued stocks.*

I was planning to use GnuCash for more than 5 years. But, I found it
impractical as I will assign these tasks to a CFO on later date. In the 5
years span, I believe I will need to do a stock split and though if GnuCash
unable to do what I need it would be a waste.

*In short, I drop my case about Stock Split.* I will migrate to cloud-based
accounting software where I can monitor who and when an individual posted an
entry.

*2. Stock account type as "child account" under Equity account type as
"parent account"*

I found it to be convenient to know how much stocks has been issued, owned
and paid by an entity. As of right now, the current solution is to create
separate accounts
Equities:Equities:Capital:Paid-in Capital:Common Stock:Entity A
Equities:Equities:Capital:Paid-in Capital:Paid-in Capital in Excess of Par
Value--Common Stock:Entity A

In short term, it is not hard to calculate how much stocks has been issued
through Entity A, B, C accounts (of Common Stock) whenever we need to
calculate how much % shares owned by a specific entity either to do a vote
or else.

This will achieve two things,
1. Manual labor for CFO and his/her subordinate in the long term, not good
for the company and the team.
2. Consequently, Finance department will need to use different software to
handle this matter. I like to simplify things and more software sound to be
the opposite of it.

In conclusion,
I believe GnuCash do not fit to do these tasks in the long run (issue
stocks, grant stock options, calculate % shares owned, calculate the voting
rights etc). I will be forced to do the manual labor using GnuCash for the
first 2 years.



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