[GNC] Combining Method in Chapter 11 and Standalone Security

[Michael or Penny Novack]

On 6/23/2022 8:48 PM, Gao Bite wrote:
> GnuCash developers & Maintainers:
>
> Hello! I have found several issues when I am reading your "Tutorial 
> and Concepts Guide". When I reads methods in the 11th chapter,I have 
> found that its example is based on non-fungible asset like painting. 
> However, what I am expecting is that records capital gains for 
> fungible securities (stock, bonds, ETF, etc.). How can I apply method 
> in this chapter to these type of assets?
>
> Yours,
>
> Bite Gao
> June 19th, 2022 

First of all, the gnucash tutorial is just that. Not supposed to be the 
equivalent of an accounting 101 text. It's just simplified basics. If 
you need more, seek out more.

But second, and perhaps more to the point for those wanting/needing BOTH 
an estimate of their true net worth and also books useful for reporting 
according to the rules of their jurisdiction is to recognize that 
gnucash can keep more than one set of books. Within reason, as many as 
you want.

Thus, if you are not taxed on unrealized gains, etc. you want one set of 
books on that basis. That is where you enter all your ordinary 
transactions and from which you extract the data for tax filings, etc. 
But if the reality is that you have investments perhaps specifically 
chosen because their increase in value is NOT currently taxable, you can 
have a second set of books for that purpose. Note I am NOT talking about 
double the effort. That second set of books might just have transactions 
reflecting annual adjustments for net realized gains/losses plus 
unrealized gains/losses plus any transactions involving the acquisition 
or disposition of such investments << or quarterly or whatever you want >>

Michael D Novack