hi Wolfgang

The following example is for Restricted Stock Unit and not Employee Stock 
Options.  (my bad)

ESOPs needs additional steps. i have included a spread sheet (it was easier) to 
give both the accounting.

For ESOP pricing you can manually enter to view the unrealized profit or loss 
in the portfolio report


welcome comments from others


Saludos Cordiales


Murugan

________________________________
From: gnucash-user 
<[email protected]> on behalf of 
Murugan Muruganandam <[email protected]>
Sent: Wednesday, April 5, 2023 10:20 AM
To: Wolfgang Paul Rauchholz <[email protected]>; Stan Brown 
<[email protected]>
Cc: [email protected] <[email protected]>
Subject: Re: [GNC] Company plan for stocks and stock options

hi Wolfgang

if it is only for tracking purpose i use the following method,  you can review 
and improvise as your need be.


| Date            | Operation         | Account                        | Stock 
Qty | Price | Dr             | Cr             |
|:-------------:|:-----------------:|:--------------------------:|:---------:|:-----:|:------------:|:------------:|
| 01-01-2022 | Options Grant   | Asset: Stock Options     | 5000      |  $20  | 
 $100.000  |                   |
|                    |                           | Asset: Contingent Asset |    
          |          |                   |  $100.000  |
|                    |                           |                              
          |              |          |                   |                  |
|                    |                           |                              
          |              |          |                   |                  |
| 01-01-2023 | Options Vesting | Asset:Stock:Stock ABC   | 1000     |  $20  |   
$20.000   |                  |
|                    |                           | Income: Other Income    |    
         |           |                  |  $20.000   |
|                    |                           | Asset: Stock Options      | 
-1000    |   $20  |                  |  $20.000   |
|                    |                           | Asset: Contingent Asset |    
          |           |  $20.000   |









Saludos Cordiales



Murugan




From: Wolfgang Paul Rauchholz <[email protected]>
Sent: Wednesday, April 5, 2023 9:01 AM
To: Stan Brown <[email protected]>; [email protected] 
<[email protected]>
Cc: [email protected] <[email protected]>
Subject: Re: [GNC] Company plan for stocks and stock options

Hi Stan / Murugan all,

Thanks for picking up and providing your insight. That was very helpful.
I would assume that options and stocks I have not exercised yet cannot get 
managed in gnucash?
Only when exercising options into stocks or selling stock or options?

The objective with gnucash is that I want to manage personal finances; expense 
control, planning, etc..



Best regards,


Wolfgang Rauchholz
+34 627 994 977
https://www.linkedin.com/in/wolfgangrauchholz/



On Tue, Apr 4, 2023 at 8:07 PM Stan Brown <[email protected]> wrote:

On 2023-04-04 10:40, Wolfgang Paul Rauchholz wrote:
>  Fairly new to gnucash and not a finance export, I want to run all my
> personal finances with this great tool.
>
> I installed 5.0 by compiling it under fedora core 37.
>
> I started adding normal daily expenses and all look fine.
>
> One of the doubts I have is how do I correctly add a company plan for stock
> options and stock plan that get vested/distributed every year. As I don't
> buy them there is no cash leaving my bank account.

The options and stocks are part of your compensation as an employee,
right? As such, the accounting would be similar to your accounting for
your paycheck.

Your paycheck (ignoring tax withholding) is
    Debit: Cash or Bank account
    Credit: Employee income

The stocks would be
    Debit: Stock in Company X
    Credit: Employee income
and similarly for the options. With stocks and options you'll want to
know number of shares and share prices so that you can compute gains and
losses when you sell them. If they aren't fully vested you will want to
note the vesting date as well.

You'll probably want to have separate accounts for stocks in the company
and stock options. To simplify computing your income tax, you may want
to have separate income accounts for income in money and income in
securities; they could both be subaccounts under an Employee Income account.

The usual disclaimer: I don't know your tax situation or any legal
requirements for how you may need to account for all of this.

Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
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Attachment: GNU-ESOP.xlsx
Description: GNU-ESOP.xlsx

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