[GNC] How to Handle Managed Securities Accounts in GnuCash

[rsbrux]

Thanks for the explanation. The accounts were already set up and funded 
from a (cash) bank account under Assets:Current Assets. I have set up 
the gains in income accounts as you suggest, but they are generic income 
accounts (in different currencies under 
Income:Common:Investment:Capital), not specific to the managed 
securities account.  The tax considerations don't affect my accounting, 
since our tax authorities use data provided by the bank.  What does 
concern me is whether the portfolio reporting is accurate.  Do I need an 
income account specific to the managed securities account to ensure 
that, or is it enough that there is a split entry for the securities 
account in each of the relevant transactions?

Also, should I record losses as expense or as negative income?

> If your managed funds were in existence at the opening of your GnuCash books,
> the the appropriate account will be an Equity account and Opening Balances
> is an appropriate subaccount. If not then whatever account the funds came
> from to setup the investment. You will need to account for any fees etc at
> setup.
>
> If the balance of the investment account increases through investment
> returns, then an income account will be appropriate as you suggested.  Where
> it resides in your account heirarchy though depends on the tax status and
> reporting requirements for such gains and losses. You really need the advice
> of a local accountant when dealing with the investment gains and losses. It
> will depend a lot on your local tax rules and the extent to which investment
> losses can be offset against other gains and losses and whether losses can
> be carried forward etc.
>
> David Cousens
>