> On Sep 1, 2021, at 11:15 AM, Lisa Rowell <lisa.gives...@gmail.com> wrote:
>
>
> On 9/1/2021 5:27 AM, Lisa Rowell wrote:
>>
>> On 8/31/2021 9:41 PM, John Ralls wrote:
>>>
>>>> On Aug 31, 2021, at 8:32 PM, Lisa Rowell <lisa.gives...@gmail.com> wrote:
>>>>
>>>> I'm working my way through my account history after a massive GnuCash
>>>> import, straightening out issues with missing realized capital
>>>> gains/losses and came across an event that I can't figure out how to
>>>> properly handle.
>>>>
>>>> I held shares of a fund called Spartan 500 Index Investor Class (FSMKX)
>>>> which merged with Spartan US Equity Index Investor Class (FUSEX) at some
>>>> odd rate around 1:0.513. When I did the import, I ended up with an account
>>>> for FSMKX and an account for FUSEX and a manually entered exchange
>>>> transaction which did a sell of FSMKX shares and a buy of FUSEX shares
>>>> with no share price. This got everything balanced out as far as share
>>>> counts go, but now I'm finding it's showing up as being not correct in the
>>>> Trial Balance. It looks to me like the exchange is being interpreted as if
>>>> an actual sell event had taken place.
>>>>
>>>> Can GnuCash properly account for this? The case in the manual's More
>>>> Complex Merger example is a bit different because the example stock
>>>> continued to trade under the same symbol, so that solution doesn't map
>>>> well. I found a past mailing list thread that said that the proper way to
>>>> account for this is as a sell transaction of the going away fund and a buy
>>>> transaction of the fund that lives on with an accompanying Realized Gain
>>>> transaction. This doesn't seem right to me though since I didn't sell the
>>>> shares and did not realize a gain and I don't even have prices for the
>>>> time of the merger. In my way of looking at it, the gain calculation
>>>> should come at the time of sale and be based on purchase price of the
>>>> various share amounts, and not at the time of the merger, since that maps
>>>> to the tax view of things where I live.
>>>>
>>>> I understand that GnuCash wouldn't be able to calculate the realized gains
>>>> post merger, and I'm ok with doing that in a side spreadsheet, but am more
>>>> looking for a way around the bogus realized gain entry at the time of
>>>> merger just to make the Trial Balance happy.
>>> If you're not too compulsive and since this is presumably ancient history
>>> in a personal book one simple way to deal with it would be to pretend that
>>> you bought the FUSEX in the first place and ignore the FSMKX, but that
>>> might be a little painful if you have a bunch of reinvested FSMKX dividend
>>> transactions that you'd also need to change.
>>>
>>> I've handled similar situations in the past by doing a simple transfer
>>> transaction between the two accounts, as in CR FSMKX 513 and DR FUSEX 1000.
>>> As long as there's no currency component to the transaction it shouldn't
>>> create a trading imbalance in the book currency.
>>>
>>> Regards,
>>> John Ralls
>>
>> That solution was what worked for me for share transfers between brokerages,
>> where the commodity was the same, but when I changed commodities it somehow
>> shows up as a mismatch in the Trial Balance. I don't have a share price for
>> the shares in either split so, in theory it shouldn't involve the book
>> currency at all. I don't get it at all.
>>
>> I'm sure it's this transaction since the balances match on the previous day
>> and the only other transaction on this date is a paycheck deposit in the
>> book currency that's no where near the amount of the imbalance. The
>> transaction is in the image attached, that's what you're advocating, right?
>>
>> Thanks.
>>
>> Lisa R.
>>
> Additional information:
>
> Removing the cross commodity sell/buy transaction does remove the Trial
> Balance discrepancy. Additionally I added up all of the purchase prices of
> shares of the fund being merged away and that amount does equal to the credit
> / debit difference in the report.
>
It is, but that doesn't quite work. Here's a sample that does:
If you don't price the share transfer to the currency (USD in both examples)
the trial balance logic assumes 0 and calculates a loss. To avoid that enter
the book value of the shares you're transferring as a sell (credit) amount in
the source split and a buy (debit) amount in the destination split:
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