[GNC] Share Records When Receivers Appointed

[Geoff]

[I am not an accountant]

I agree with John.  The shares are currently untradeable and effectively 
worthless so set the price to zero and bring your capital loss to book 
as an expense (or negative income).

Then, if you think you can offset it against future capital gains for 
tax purposes, you could transfer it to a contingent asset account. 
There was a discussion here recently from Mattia about a similar concept.

Finally, if you are really pernickety, and if you think the receivers 
will extract some value for you from the wreckage in the future, you 
could book this estimate as deferred income against another contingent 
asset account.

Hope this helps.

Regards

Geoff
=====

On 2/03/2024 3:16 pm, john wrote:
> I think that's a question for a local licensed tax or accounting professional. It's true that the accounting value of an asset is what you paid for it (modulo depreciation, but that doesn't apply to shares) until you decide/are allowed to write it  When that is depends heavily on your jurisdiction's tax code, not something we can help you with here.
> 
> GnuCash separates market value from book value with prices, so you can enter a price of 0 for the commodity and that will be reflected in reports when the price source is "nearest in time" or 'latest", while the book value will be reflected when you use "average cost" for a price source.
> 
> Regards,
> John Ralls
> 
> 
>> On Mar 1, 2024, at 18:32, flywire <flywire0 at gmail.com> wrote:
>>
>> How should shares be recorded in GnuCash once receivers are appointed?
>>
>> Shares are no longer being traded but the ASX quote feed returns the price
>> last traded. There seems to be a realistic (management) value and a tax
>> value. The realistic share value is zero but I understand the tax value is
>> the purchase cost until the administration process is finalised,
>> likely many years away.
>>
>> I expect I might need to reports for both values.
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