Or we could make it a bit more complicated and throw in the following methods, FIFO(First in first off) LIFO(Last in first off) Highest cost method or Lowest cost method.Lol
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
Last edited by winner69; 31-10-2018 at 01:35 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Look what you done now Longy ....caused a raucous on this thread anybody can agree
Must have been a hard question and maybe not one correct answer
Wasn't meant to. I did not know making a buck or two could be so complicated. I think just hand everything over the accountants and they could sort it out then... but it seems silly to do that without doing some investigation into it.
Wasn't meant to. I did not know making a buck or two could be so complicated. I think just hand everything over the accountants and they could sort it out then... but it seems silly to do that without doing some investigation into it.
Have you seen what accountants charge? They dont get to live in flash mansions and drive exotic cars for no good reason. Accounting charges, along with taxes are good reasons to stay as an "investor" rather than a "trader" in my books.
Wasn't meant to. I did not know making a buck or two could be so complicated. I think just hand everything over the accountants and they could sort it out then... but it seems silly to do that without doing some investigation into it.
Good you want to do things properly as well as understand it all.
Do you keep all your share trading activities completely seperate from your other finances?
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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.
Have you seen what accountants charge? They dont get to live in flash mansions and drive exotic cars for no good reason. Accounting charges, along with taxes are good reasons to stay as an "investor" rather than a "trader" in my books.
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 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.
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.
Or we could make it a bit more complicated and throw in the following methods, FIFO(First in first off) LIFO(Last in first off) Highest cost method or Lowest cost method.Lol
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.
Originally Posted by couta1
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I did not know making a buck or two could be so complicated. I think just hand everything over the accountants and they could sort it out then... but it seems silly to do that without doing some investigation into it.
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