Must be more Couts ......and I hope whatever method longy uses it balances with his trading account and cash book at the end of the year
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I think most accountants do first in first out basis. Sharesight does that for you
I tried to figure out what ASB were doing to give me my balances, and after some discussion if I understood them correctly they follow Couta's running average theorum. What was really confusing was when I sold out of one share then bought back in at a later stage and discovered that they keep the running average despite the zeroing out in the middle.
Yeah... I think the bill is going to be a fat one. With some luck this Govt would leave the capital gain tax alone for a while... If they have their ways, I feel it makes no difference to weather you are investors or traders. I think tax shall be paid on any gain. Finger cross.
I think you will find that what has been kept is just a transactional history of your previous movements in the stock you sold out of but have consequently repurchased, previous running average should not be added to your new position. PS-Have never used ASB only ANZ.
Yeah I thought it wouldn’t matter which if FIFO, LIFO or WACC you use as long as you keep consistent over periods. I heard LIFO is not allowed in US (from a uni lecture) but LIFO is also allowed in NZ. For simplicity it would FIFO that may be preferred in retail business but WACC may work too if you choose so?
As this thread is supposed to be about A2 milk I will limit my comments with regards to the cost accounting to the fact that most of what has been written here is complete and utter rubbish and is best ignored.
DO YOUR OWN RESEARCH !