Hi Christopher
Thanks for pointing out these issues.
My reasoning for the need to book a future liability for a short sell
was to record the obligation to deliver the short sold stock at a future
date. Perhaps "contingent liability" would be a better term?
Anyway, I'll leave that to the experts.
Regards
Geoff
=====
On 9/06/2021 11:34 am, Christopher Lam wrote:
Hi Geoff
On Wed, 9 Jun 2021, 9:27 am Geoff, <cleanoutmys...@gmail.com
<mailto:cleanoutmys...@gmail.com>> wrote:
Gnucash will permit you to run a negative balance on a stock, see
attached screenshot.
The UI will allow you to record transactions when short-selling, but
bear in mind:
- the current portfolio and advanced portfolio reports cannot handle
negative stock balances; the reports will bail out.
- it's likely very wrong to record a single transaction that sells more
stock than your current holding; you'll need to sell current balance
(and record cap gains/losses) *then* record a separate short-sell
transaction to achieve a negative balance.
- recent releases (4.5? or current daily builds) have an experimental
IFRS cost basis report which aims to calculate the average cost base,
according to some jurisdictions eg Canadian. It's not guaranteed correct
yet.
Note that I am not an accountant, but I think you should also book a
future liability for when the short falls due.
Why?
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