Herbert Thoma writes:
> That's a point. It would mean to treat stock like a tradesman treats
> commodities.
Sort of. Inventory valuation is as complex as depreciation.
> But then the price must remain the purchase price.
The tradesman doesn't always value his inventory at cost. Then there's
LIFO & FIFO...
> On sale this value gets transfered to a bank acoount and any profit/loss
> comes from an income/expense account.
This the correct way to do it in the US for tax purposes.
> This may be the 'correct' accounting solution, but it would prevent stock
> price tracking, right?
If that's all you do, it does make it difficult to produce realistic
reports. Perhaps you could keep track of the difference between cost and
current market value in an auxiliary account and arrange to be able to
generate reports either with or without it. This would be keeping two sets
of books which is illegal in the US for corporations but not, I think, for
individuals.
--
John Hasler
[EMAIL PROTECTED] (John Hasler)
Dancing Horse Hill
Elmwood, WI
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