[GNC] Another "multi-account" logical issue - any advice on how to register this?

[David Cousens]

Chris,

Flavio has stated a number of times that he is not conducting a
business, so he is not acquiring the assets specifically for resale.

The ASC320 requirements would be applicable if he was and was in the US
and had a legal requirement to keep his books in accordance with those
standards. He could of course choose to do so in any case, but it would
be unnecessarily complicated for a non-business activity.  

Ultimately if he wanted to be completely compliant this would depend
on, in his case, the Swiss accounting standards, which in the European
Union will likely be the IASB standards as modified by Switzerland when
they adopted them.

David Cousens

On Mon, 2024-09-30 at 11:53 -0700, Chris Miller via gnucash-user wrote:
> Hi Stan,
> 
> > I would absolutely record shipping as an expense, not an asset. The
> > asset has value after you receive it; the shipping is "used up" the
> > moment the package arrives. Only things that still have value
> > should be
> > listed in Assets.
> 
> I respectfully disagree:
> 
> The Financial Accounting Standards Board (FASB) guidance that
> addresses the book value of an asset, including costs related to
> acquisition and deployment (such as shipping and installation), is
> covered in ASC 360, Property, Plant, and Equipment.
> 
> Under ASC 360, costs that should be included in the book value of an
> asset are those necessary to acquire the asset and prepare it for its
> intended use. This includes:
> 
>     Purchase price
>     Direct costs of acquisition (e.g., shipping, handling, and
> installation)
>     Costs required to bring the asset to the location and condition
> necessary for it to be used in operations
> 
> These guidelines reflect that the book value (or carrying amount) of
> an asset is not just the purchase price but also any ancillary costs
> required to make the asset operational.