Accounting for Shares/Bonds at June 30th - unrealised gains or losses

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stevewhittam
stevewhittam Member Posts: 3

I have created Asset accounts for shares/bonds purchased over the past year.

None of them have been sold in this FY so there are no realised Capital Gains or Losses.

At June 30th they need to be valued at Market Value

How do I do that?

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,578 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Hi @stevewhittam

    Is there a reason why? They’re not normally valued (for the cost base) until disposal 🤔

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • stevewhittam
    stevewhittam Member Posts: 3
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    That what I thought but its for a Superannuation fund (Which I haven't had to do before) and yes I'm advised by the accountant that they do have to be declared at Market Value

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,578 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Are you a share trader (eg in the business of buying/selling, rather than just an investor) ?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • stevewhittam
    stevewhittam Member Posts: 3
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    Nope it’s an SMSF

    no trading mostly buy and hold but Bonds mature or are called

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,578 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 2023
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    In that case I’m not sure what to advise in terms of your transactions in Hosted then, as it depends why it’s required (to identify what components would be considered part of the “market value”) 🤔

    In business, you would normally create your Shares as Inventory Items in order to facilitate this as the Inventory value reflects on the balance sheet 😬

    Do you also run a business or are you just using Hosted for your shares ?

    If just for your shares, you’d be better off using Reckon Accounts Personal Plus as that program is for personal finances & accommodates shares more specifically.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Bruce
    Bruce Member Posts: 442 Professional Partner Professional Partner
    edited June 2023
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    Yes, you must value shares at Market Value in a SMSF

    @Acctd4 is correct that Personal is better equipped to deal with shares.

    If you have to use Hosted then process by journal eg

    • purchase price (or current value if it has been reported at a different value to purchase price) $100
    • m/v $120
    • jnl dr shares $20, cr unrealised cap gains/losses (which i would set up under the “other income” category