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

stevewhittam

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?

Acctd4

Hi @stevewhittam

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

stevewhittam

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

Are you a share trader (eg in the business of buying/selling, rather than just an investor) ?

stevewhittam

Nope it’s an SMSF

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

Acctd4

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.

Bruce

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