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100 lines
3.6 KiB
Plaintext
100 lines
3.6 KiB
Plaintext
RAW NOTES
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---------
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These need to be beautified into real documentation.
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=========================================================================
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stock splits & cost basis
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-------------------------
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OK, here's a question for accountants of various different countries:
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What's the cost basis for a stock split? Does the rest of teh world do
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it the way the US does it?
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For eaxmple:
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In Jan 1995 buy 100s stock for $10 per share
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In July 1997 split 2-for-1
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In August 1997, sell 120s stock for $30 per share
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I beleive the following is correct for the united states:
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My cost basis is $5 per share, and my gains of $25x120 are taxable
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as long-term cap gains.
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--- would there ever be a case where the cost basis should be $10 for
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the first 100 shares, and $0 for the remainder?
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--- would there ever be a case where the gains would be considered
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'short-term' for some portion of the total?
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----------------------------------------------
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OK, that was easy. Here's the harder one: a spin-off:
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For example:
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In Jan 1995 buy 100s of stock A for $10 per share
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In July 1997 receive 1s of stock B for every 20s of stock A.
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Stock B is new, and will trade under its own new ticker symbol
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as of the date of this split.
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-- What's my cost basis for B? is it $0.000 ?
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-- What's my cost basis for A? is it $10, or something else?
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-- Are these questions supposed to be answered by company A,
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or do I just 'guess'?
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Note there is still an invarient:
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(old price of A) * 20s == (new price of A) *20s + (price of B) * 1s
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=========================================================================
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Depreciation, Sinking Funds ...
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On 21 Apr 2000 20:39:43 CDT, the world broke into rejoicing as
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John Hasler <john@dhh.gt.org> said:
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> Lauren writes:
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> > I'm not familliar with sinking funds, but what makes them a bit different
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> > from a book entry like depreciation (also somewhat virtual) is that they
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> > are happening with real accounts that need to be reconciled against an
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> > outside statement.
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>
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> I don't see that. While the purpose of a sinking fund may be to pay off
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> some bonds in ten years and there may even exist a legal obligation to have
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> it, the funds being transferred to it now have nothing to do with any
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> outside statement.
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>
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> A sinking fund to pay off some bonds is pretty much the same thing as
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> saving up to pay off the balloon payment on the morgage.
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>
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> When you transfer funds to your "Savings Goal" or your "Sinking Fund" you
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> are transferring funds from one asset account to another. Just credit
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> 'Cash' and debit 'Savings Goals:Honeymoon'.
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The problem with proceeding to credit Cash and debit "Savings Goal" is
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that this invalidates any reconciliation of Cash. I'd be game to do
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this if I credited not Cash, but rather "Cash:Goals", a subaccount of
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Cash that can be ignored when it needs to be,
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For different purposes, I will want both to consider and ignore these
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"funds reservations."
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a) When making up a _budget_, I care about what funds are reserved for
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particular purposes.
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b) When trying to figure out if my bank account is going to be
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overdrawn,
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"reserved" funds are _irrelevant._
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I would thus suggest that the "gentle user" use the budget system to
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manage this rather than having these be "true" transactions in the
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ledger.
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======================================================================
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document the 'security' and the 'price quotes' fields.
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fix em up too ...
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======================================================================
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Instructins for how to do QIF import should be reviewed/redone
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======================================================================
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typing + in the check-number field uses the next check number ..
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xxx
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