Re: [GNC] Combining Method in Chapter 11 and Standalone Security
Bite, The overall methodology is the same although the calculation of the unrealized gain or loss is slightly different from the example - there is no external valuation just recording a stock price. A new valuation of a painting is essentially the same as a change in an updated stock price stock price etc. To calculate the unrealized gain or loss over a period it is the number of securities held over the period x the difference between prices at the start and end date of the period over which you evaluate the unrealized gains and losses gain/loss = N*(price at end - price at start). You can choose any period which is convenient for your purpose so long as you have obtained a price at the end date of the period - it need not be at a fixed interval. The intervals do have to be contiguous, i.e. the end date of one period is the start date of the next. If you sell at a particular point it becomes a realized gain/loss for the number of securities involved in the sell and the unrealized gain goes to zero for the securities you have sold, but not for any you continue to hold and a buy increases the number of securities in the calculation going forward. You will need to maintain your cost base for CGT purposes. To do this you would use sub-accounts of the main stock account (of type stock) one for the recording of the initial purchase cost and susequent any buy/sell operation and the second to record the unrealized gains/losses as in Ch11. You will need a corresponding income account which is not included in your taxable income against which the unrealized gains and losses are recorded as in the Ch11 example. A gain will debit your security's unrealized gains/Losses account and credit your Income:Unrelaized Gains and Losses account by the amount of the gain while a loss will reverse the debit and credit accounts. As David T pointed out the major problem is keeping the cost base evaluation valid if you are buying and selling only part (lots) of the holding in any given security but this is independent of the unrealized gains/losses. David Cousens On Fri, 2022-06-24 at 08:48 +0800, Gao Bite wrote: > GnuCash developers & Maintainers: > > Hello! I have found several issues when I am reading your "Tutorial and > Concepts Guide". When I reads methods in the 11th chapter,I have found > that its example is based on non-fungible asset like painting. However, > what I am expecting is that records capital gains for fungible > securities (stock, bonds, ETF, etc.). How can I apply method in this > chapter to these type of assets? > > Yours, > > Bite Gao > June 19th, 2022 > > ___ > 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.
Re: [GNC] Combining Method in Chapter 11 and Standalone Security
On 6/23/2022 8:48 PM, Gao Bite wrote: GnuCash developers & Maintainers: Hello! I have found several issues when I am reading your "Tutorial and Concepts Guide". When I reads methods in the 11th chapter,I have found that its example is based on non-fungible asset like painting. However, what I am expecting is that records capital gains for fungible securities (stock, bonds, ETF, etc.). How can I apply method in this chapter to these type of assets? Yours, Bite Gao June 19th, 2022 First of all, the gnucash tutorial is just that. Not supposed to be the equivalent of an accounting 101 text. It's just simplified basics. If you need more, seek out more. But second, and perhaps more to the point for those wanting/needing BOTH an estimate of their true net worth and also books useful for reporting according to the rules of their jurisdiction is to recognize that gnucash can keep more than one set of books. Within reason, as many as you want. Thus, if you are not taxed on unrealized gains, etc. you want one set of books on that basis. That is where you enter all your ordinary transactions and from which you extract the data for tax filings, etc. But if the reality is that you have investments perhaps specifically chosen because their increase in value is NOT currently taxable, you can have a second set of books for that purpose. Note I am NOT talking about double the effort. That second set of books might just have transactions reflecting annual adjustments for net realized gains/losses plus unrealized gains/losses plus any transactions involving the acquisition or disposition of such investments << or quarterly or whatever you want >> Michael D Novack ___ 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.
Re: [GNC] Combining Method in Chapter 11 and Standalone Security
The concept of capital gains is the same, whether you're talking about a painting or a stock. The difference between your purchase and your sale price is the gain or loss. The only trick to consider for stocks is that different lots of stock purchases can have different cost bases, which obviously affects gain calculations. What are your specific issues? On June 23, 2022 8:48:09 PM EDT, Gao Bite wrote: >GnuCash developers & Maintainers: > >Hello! I have found several issues when I am reading your "Tutorial and >Concepts Guide". When I reads methods in the 11th chapter,I have found that >its example is based on non-fungible asset like painting. However, what I am >expecting is that records capital gains for fungible securities (stock, bonds, >ETF, etc.). How can I apply method in this chapter to these type of assets? > >Yours, > >Bite Gao >June 19th, 2022 > >___ >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.
[GNC] Combining Method in Chapter 11 and Standalone Security
GnuCash developers & Maintainers: Hello! I have found several issues when I am reading your "Tutorial and Concepts Guide". When I reads methods in the 11th chapter,I have found that its example is based on non-fungible asset like painting. However, what I am expecting is that records capital gains for fungible securities (stock, bonds, ETF, etc.). How can I apply method in this chapter to these type of assets? Yours, Bite Gao June 19th, 2022 ___ 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.
