[GNC] (no subject)

[David Cousens]

Gilberto,

1. You would normally make the adjustment between the account for the mutual
fund and equity to bring the balance into agreement with a statement. Income
and Expense accounts are in accounting terms a temporary equity accounts
where temporary denotes pertaining to the current period. You would record
the adjustment when you become aware of the need for it, which would limit
the likelihood that the amount of any adjustment is likely to be material -
i.e. affect whether your accounts represent a true reflection of you
financial position. Corrections of a few cents are not likely to be material
but a $100 correction is definitely likely to be.

If the corrections pertain to only the current financial year, you could 
use an income or expense account as appropriate for the direction of the
correction. If the correction covers differences accumulated over over more
than the current financial period, then it would probably be more
appropriate to adjust to equity.  These would also be typical of the
adjustments made after forming a trial balance during the close books
procedure in accounting practice and would likely be made after combining
Income and Expenses to an Income Summary account (Income - Expenses) during
that procedure.  Main thing is to annotate the correction describing what it
is correcting and what period(s) it pertains to.

2. Really the same sort of considerations as in 1.

The usual disclaimer applies. This should not be considered as accounting
advice and you should consult an accountant in your jurisdiction for
specific advice where required.

David Cousens



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David Cousens
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