On 25 June 2014 3:08:19 PM AEST, Rick F <[email protected]> wrote: >"Allowing the cost to show up in > >both places would break the accounting equation; this transaction must >balance." > > >So I've been thinking about this and I think that is the fundamental >problem. Technically, commission (at least in the U.S.) isn't an >expense, it's an asset. It sounds strange, but think about it. In the >U.S., the commission counts toward the cost basis and the cost basis is >recorded with the asset. It's the whole depreciate vs. expense issue >in accounting. > > >I'm not sure how, but I think the solution is somewhere down that road. >Maybe creating a fake asset that is the commission per share, maybe a >sub-asset. > > >The thing is, this isn't a new problem. This isn't a ledger problem so >much as an accounting problem. Accountants (in the U.S. at least) >already have to deal with this situation. Does anyone know how >accountants deal with this currently?
I found this the other day. It details the flows between various accounts in a wide range of situations. http://timriley.net/appahost/accountancy_model.pdf I found it helpful so far in getting my head around fund accounting. Hopefully, others can get some value from it too. Bruce -- :B -- --- You received this message because you are subscribed to the Google Groups "Ledger" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
