I have general comment about the term "asset appreciation." Realizing that we have an international user base, I favor the use of an intenational accounting jargon. However, I feel I should mention the jargon used in the U.S. should there be a chance that it is also used elsewhere rather than asset appreciation.
Although I have never heard the term used in the U.S. as a licensd professional (CPA), I do think that it is a logical description, moreso then the term Capital Gains. But I don't generally expect to see the term asset appreciaiton anywhere.
Hello James-
Let me explain my logic for using the term asset appreciation. (now, whether this logic is correct, I do not know )
For me, I see "asset appreciation" as the concept of an asset you own increasing in value. For example, you suspect that a painting you own has increased in value from when you bought it. Thus, *theoretically*, you have asset appreciation. However, tax laws do not concern themselves with asset appreciation. They want cold, hard numbers, which can only occur when you sell the asset. At that moment, this nebulous "asset appreciation" becomes the IRS's "Capital Gains".
Does that sound right?
Thus, the reason why noone ever talks about asset appreciation, is simply because in the context of accounting, it doesn't need to be tracked (since it isn't taxed). This is opposed to depreciation, of course.
In terms of using international terms... I would say it is probably better to use the terms specific for each country. Why? Well, the help files can always be translated. Here in Brasil, it is similar to the US. "ganho de capital" is the term, noone uses the equivalent of asset appreciation either.
So, maybe what I should do, is try and use the term "capital gains" whenever possible. Maybe only the intro to the chapter should mention asset appreciation, but thereafter use capital gains.
I also have a general comment about when it is accounted for in the U.S.
In general, U.S. accountants do not revalue assets to fair market value. However, there is one exception, and that is securities for sale on the open market.
When stock with a readily determinable fair market value goes up in value, we call that unrealized appreciation. There is not much more that we account for here as far as Unrealized appreciation is concerned.
So, is there any tax implications to unrealized appreciation? Or, is it tracked only so you know the potential value?
-- -**-*-*---*-*---*-*---*-----*-*-----*---*-*---*-----*-----*-*-----*--- Jon Lapham <[EMAIL PROTECTED]> Rio de Janeiro, Brasil Work: Extracta Moléculas Naturais SA http://www.extracta.com.br/ Web: http://www.jandr.org/ ***-*--*----*-------*------------*--------------------*---------------
_______________________________________________ gnucash-devel mailing list [EMAIL PROTECTED] http://www.gnucash.org/cgi-bin/mailman/listinfo/gnucash-devel
