[GNC] ASSETS

[davidbrown.rdps at photos.bozeat.biz]

Thank you Michael for your reply .... it is a GNU question...  We are a small club and a couple of assets were missed in the "brought forward balance" when starting with this App a couple of years ago, so they are listed in the balance sheet.  We haven't depreciated them as this is noted in our EoY.  It acts as a list of equipment at he same time.

When I put them in the Equipment A/c it does a CR and DR at the same time which I don't want.  A single entry to increase the assets without having to buy them.

I need the GNU App to add a couple of items that are of value to be represented at EoY.

Thanks

David

-----Original Message-----
From: gnucash-user <gnucash-user-bounces+davidbrown.rdps=photos.bozeat.biz at gnucash.org> On Behalf Of Michael or Penny Novack
Sent: 08 January 2023 17:27
To: gnucash-user at gnucash.org
Subject: Re: [GNC] ASSETS

On 1/8/2023 8:35 AM, davidbrown.rdps at photos.bozeat.biz wrote:
> 08 Jan 23
>
> Dear all, I have a couple of additional assets to be included in EoY 
> reports in a  few months, that have cost nothing, but a value needs to 
> be shown as assets have increased.
>
> How do I include those at their value?
>
> My current status for that account is ....  ASSETS > Current Assets > 
> Equipment ....  although there is another account showing ....  Equity 
> > Equipment Assets
>
> Thank you ...
>
> David

This is an accounting question, not a gnucash question. You need to refer to the rules of your jurisdiction/

By the account named (Equipment Assets) I assume that these are probably "fixed assets" that are depreciated annually. You say 'cost nothing" so I assume that means literally (cost nothing to
acquire) or already fully depreciated.

In MY jurisdiction these would come onto the (new) books at zero value. 
Yes, they might have residual real value in the sense that they could be sold for something. But if and when that happens, the "profit" (sale price - basic cost + depreciation since acquisition)  would be a capital gain. You would not "mark to market" << in your main/legal books >> as this gain is still imaginary/conditional/hasn't happened yet an maybe never will.

HOWEVER -- there is a special case situation where your "legal" economic state (according to your jurisdiction)  is very different from your actual economic state because some assets have greatly more value than the jurisdiction recognizes. In that case, perhaps a second set of virtual books that have no legal standing.  This does not require total duplication of effort as this second set of books need only have  a few accounts and these adjusted only annually, etc.

It's not JUST assets the jurisdiction doesn't recognize but possibly also expenses paid on your behalf that the jurisdiction doesn't consider income. The purpose of accounting is financial INFORMATION including the ability to compare "what ifs" and without being able to take into account things like this you couldn't, for example, compare two job alternatives, one with and one without a large amount of such "percs"

Michael D Novack.

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