[GNC] Direct Adjustment of Security's Price

[Gao Bite]

Mr. D, Cousens:

I am sorry that I did not state what I expected from the income 
recording well in the previous e-mail. I wish that you could read it 
carefully and give me advice accordingly.

I purchase securities for speculation, which I anticipate their market 
price and the ability to resell these securities for that price. Every 
two weeks, I need to update the market price of my holding securities. I 
need to increase (decrease) the securities' asset value. What's more, I 
need to record changes in market value as an income. I need to be able 
to display the value of income over time so that I can have a better 
decision on investing.

However, I have some issues in recording my investing process in your 
software. First of all, the built-in trading account generates gains and 
losses only on the current exchange rate, so it is hard to display the 
performance of the investment over time. While adjusting securities' 
value affects the total asset's value standalone, recording the 
investment income needs a corresponding asset account. This fact gives 
me two choices: either detach the asset value from the accounting 
equation or detach the securities' book value from their market value 
(as the method in the tutorial displays).

I sincerely hope that there is a method to fix these incorrectnesses. I 
would greatly appreciate it if you help me find these methods.

     Yours,

     Bite Gao
June 20th, 2022

On 2022-06-20 6:41, davidcousens49 at gmail.com wrote:
> Bite
>
> The transaction to record this, if a profit or increase in value of the security
> is to debit the security by the amount of the profit and to credit an income
> account by the same amount. For a loss in value creidt the security account and
> debit the income amount. The profit or loss is the product of the number of
> securites held  and the difference in prices between the date at which you are
> recording the unrealized gain/loss and the price at the time you have previously
> recorded a gain or loss Ultimately this traces back to the initail purchase
> price.
>
> You may find it useful to use a sub-account of the security (of the same type
> account) totalling into the security account to record the unrealized gains and
> losses so that you preserve the initial cost basis which you will likely need
> for capital gains taxes in most jurisdiction. Unrealized gains and losses are
> generally not taxable as income in most jurisdictions, so you would need an
> Income account separate from any Income account structure which records income
> for taxation purposes.
>
> David Cousens
>
> On Sun, 2022-06-19 at 21:56 +0800, Gao Bite wrote:
>> GnuCash developers & Maintainers:
>>
>>       Hello! I would like to record the unrealized profit & loss from
>> security investment directly into an income account. Could you please
>> tell me whether I am possible to do as above, and if possible, how I can
>> achieve this?
>>
>>       Yours,
>>
>>       Bite Gao
>>
>> June 19th, 2022
>>
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