Of course accounting is a headache, and if you are small business company or
individual with a small amount of transactions, you can pretty much ignore
it. But if you are business doing millions of dollars in business, you
can't.
Example:
I buy $1,000.00 US in e-gold. The price of gold goes down. I use $100.00
of e-gold to buy something. I now have a transaction that needs to be
accounted for. In this case I will incure a capital loss, and say still
have $850.00. Then someone buys something from me, and pay me in e-gold,
$100.00. This is an income transaction. However, the price of e-gold goes
back up to what it was when I first bought my gold. I have more or less
$1,000.00. If I buy something else, what is the basis for the transaction.
That is do I have use the lower basis for most recent receipt of e-gold, or
do I use last in approach and use the original basis for e-gold. So I have
to keep an additional record on not only how much income I earn, and how
much expenses I expend, I also have to keep records on the basis price of
every transaction of a fungible commodity (e-gold), and track every
transaction and then figure out which basis cost to use to calculate what is
most likely going to be a short-term capital gain which I will have to pay
taxes on, or a loss which I will be able to use offset other gains.
The above describes my usage of e-gold and is manageable. I can either
choose to ignore the whole thing, maintain limited records on a few odd
transactions, or don't use it at all because my head is starting to hurt.
Now if I was a big company, and you multiplied not so much the dollars but
the numbers of transactions, then it becomes unmanageable. At least for me.
I would never even consider it. It is the same reason that most business
people generally avoid foreign currency transactions unless they are well
versed in the intracacies of handling such accounting issues, not to mention
hedging issues.
On Wed, 20 Dec 2000 08:31:22 -0800, [EMAIL PROTECTED] wrote:
> > It is just too much accounting work to tolerate.
>
> I say the accounting is already too screwed up to tolerate. It is flat
> out a 'job security' and 'keep the sheeple too busy to think' joke.
> Supposedly if you give your papers to 10 accountants and you will get
> back about 10 different (widely) varying amounts you 'have' to pay.
>
> > That is why no legitimate tax paying business can afford to use
>
> Using e-gold simplifies transactions and reduces overhead. Due to the
> deflationary pressure of the net: no legitimate tax paying business can
> afford *NOT* to use e-gold to reduce costs to stay in business.
>
> Since I have not yet learned how to confidently & legally avoid paying
> too much tax, I fill out the basic stuff and send it in. If they can't
> figure out how to leach off of me, that's their problem. Now they might
> make it my problem too :( (very unlikely given my current circumstances)
> and I will politely do what I can to make them happy and just say I did
> not understand - which is true. If I feel lucky that day I might even
> ask them a few questions to show they can't figure it out either.
>
> > And as such e-gold will always have a very limited exposure.
>
> e-gold is growing at ~0.5% per day. Do the math on that one. And look
> out when this over leveraged paper financial system finally dies. When
> the sheeple finally get it, they will not give a hoot about legalese,
> they will pay a lot to get what's left of their money somewhere safe.
> (that is why/when the price of gold will really go up.)
>
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