Thanks for the explanation. The accounts were already set up and funded
from a (cash) bank account under Assets:Current Assets. I have set up
the gains in income accounts as you suggest, but they are generic income
accounts (in different currencies under
Income:Common:Investment:Capital), not specific to the managed
securities account. The tax considerations don't affect my accounting,
since our tax authorities use data provided by the bank. What does
concern me is whether the portfolio reporting is accurate. Do I need an
income account specific to the managed securities account to ensure
that, or is it enough that there is a split entry for the securities
account in each of the relevant transactions?
Also, should I record losses as expense or as negative income?
If your managed funds were in existence at the opening of your GnuCash books,
the the appropriate account will be an Equity account and Opening Balances
is an appropriate subaccount. If not then whatever account the funds came
from to setup the investment. You will need to account for any fees etc at
setup.
If the balance of the investment account increases through investment
returns, then an income account will be appropriate as you suggested. Where
it resides in your account heirarchy though depends on the tax status and
reporting requirements for such gains and losses. You really need the advice
of a local accountant when dealing with the investment gains and losses. It
will depend a lot on your local tax rules and the extent to which investment
losses can be offset against other gains and losses and whether losses can
be carried forward etc.
David Cousens
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