IANA as well, but I think that because it is possible to record negative gains under Income, I find that easier than creating companion loss accounts for income every income account. It is a user preference in my opinion.
On Tue, Mar 2, 2021 at 6:11 PM gnu Gord <gnucashg...@gmail.com> wrote: > Thanks for the explanation. > I was trying to follow the example in Chapter 11 of the GnuCash > Documentation that seems to indicate the unrealized capital gains are > recorded in Assets:Fixed Assets... and I would record a transfer from > Income:Unrealized Gains... > However, I didn't understand how to record a loss. Would I make an entry in > the Income:Unrealized Gains as a negative amount or create an entry in an > Expenses:Unrealized Gains account? With a similar approach for realized > capital gains? > > This is all just for my own personal records so, I guess, I could record it > anyway I like but I'd like to follow some sort of standard so I don't go > too far astray! 😉 > > Thanks again. > > On Tue, Mar 2, 2021 at 3:39 PM David Cousens <davidcous...@bigpond.com> > wrote: > > > gnuGord, David, > > > > There is nothing in accounting practice per se to stop you tracking > > unrealized gains or losses for your own purposes, e.g. management of your > > assets. > > > > It is just that they are not usually recognized for purposes like > taxation > > and financial reporting as income or expenses for a business until they > > have > > actually been incurred, usually on the sale of the asset/stock > > involved.There are some cases in some jurisdictions where they are > recorded > > for financial reporting in addition to realized gains and losses but this > > is > > not common. Capital gains taxes do not normally apply to unrealized gains > > or > > losses. The rules on this vary between jurisdictions and this is a case > > where local professioanl accounting advice is needed. > > > > If you are going to track them, you would normally do so against a > > sub-account of Equity labelled as "Unrealized Gains or Losses" (which may > > or > > may not in turn have sub-accounts for specific assets or asset classes > > depending on the detail you require). It would be also a good practice to > > have a sub-account totalling into the asset account for the particular > > asset > > to record unrealized gains and losses so that you can easily > differentiate > > realized gains and losses from unrealized gains and losses in your > accounts > > where you are using them to formulate input for taxation and financial > > reporting . > > > > The sale transaction which zeros the asset value and debits your bank or > > brokerage account then includes two additional splits which zero out the > > unrealized gains and losses balances in the asset sub account and the > > Unrealized Gains and Losses account(s) in Equity. > > > > David Cousens > > > > > > > > ----- > > David Cousens > > -- > > Sent from: > http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html > > _______________________________________________ > > gnucash-user mailing list > > gnucash-user@gnucash.org > > To update your subscription preferences or to unsubscribe: > > https://lists.gnucash.org/mailman/listinfo/gnucash-user > > If you are using Nabble or Gmane, please see > > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > > ----- > > Please remember to CC this list on all your replies. > > You can do this by using Reply-To-List or Reply-All. > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > -- David Carlson _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.