Sorry, I was gone all weekend and could not contribute earlier. Friend had a baby...
On Sat, 2003-01-11 at 10:29, Derek Atkins wrote: > [EMAIL PROTECTED] (Linas Vepstas) writes: > > > > You started to give an example with Enron, but you never finished it. > > > Could you, please? To me, the fact that Enron stock went from > > > $100/share to $1/share does not change the basis of your stock > > > > It doesn't change the cost basis, but it is needed when preparing > > a formal balance sheet for a business. You don't want to cavalerly > > say 'gee, todays price for enron is x', you want to say 'we have > > adjusted the book value of our enron holdings to reflect the reality > > of the marketplace, and this adjustment is shown in the 'unrealized > > losses' line'. > YES YES YES!!!! That's what I was referring to with the adjusting transactions, and putting a Split into the unrealized gains account. I think there are situations where you may be able to apply it to taxes, but US tax law is quite a PITA, and there's no way I'd swear to it. > So what you are saying is that if you ever DO realize the loss, you > have to recapture that gain/loss and, in effect, "re-point" all those > "unrealized loss" transactions to your realized-loss account... > Meaning you need to know whether an "adjustment transaction" is for > realized or unrealized gains/losses.... How, "special". > > Obviously you cannot just change the account of the un-realized > gains/losses, right? So, you would need to add a new txn from > unrealizedGL to realizedGL. That's what I mean by "special". > This is true. All must balance, and worship the god of 0. This transaction, however, is quite simple to create, and doesn't require anything (that I can think of) from the development staff. I could actually post an example double-entry, tomorrow, if anyone's interested... > > The formality of creating an auditable transaction like this has > > some real reporting advantages. Especially if we had some juicy > > profits because enron later went up ;-> Ahh, yes, accounting .... > > Sigh. Can I go shoot someone now? I think the double balance thing may work OK. Would the stock register have to be able to accept entries with 0 shares but non-0 buy/sell amounts to make that work? I would think so, but if there's a better way... That was a great summary from Linas. Could there be a check for -- Matthew Vanecek perl -e 'print $i=pack(c5,(41*2),sqrt(7056),(unpack(c,H)-2),oct(115),10);' ******************************************************************************** For 93 million miles, there is nothing between the sun and my shadow except me. I'm always getting in the way of something...
signature_asc_DEFANGED-796.DEFANGED-14430
Description: application/defanged-14430
