DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Buying of Company Shares/Securities Share Market


#1

When recording purchased fixed assets like vehicles, they get allocated and tracked.

How does one do so with intangible assets like multiple shares in different companies?


#2

Manager doesn’t have a module to track shares. So you will simply need to create an asset account under your Chart of Accounts called Stock investments or similar. Then post regular journal entries to account for gains/losses.


#3

Ok.

Would I also need to record this an as intangible asset?


#4

No. Intangible Assets should be used for things that must be amortized, like the value of a trademark or patent that you purchased from a previous owner. Also, sometimes the purchase of an ongoing business includes a portion of the price for “good will.” Such assets are not physical items, like Fixed Assets, but have value that lasts for long periods. So from an accounting perspective, they are not current operating expenses and cannot be depreciated, although the concept is very similar.