Inventory Value Adjustment

Hi all,

Would like to know if there is any way to increase my stock value or decrease my stock value on monthly basis?
As am using this concept for securities/unit trusts/crude oil investment in as part of inventory valuation.
This would affect my realised and unrealised gain/loss in my investment. This concept is similar to gain/loss in foreign exchange.

Please enlighten me.

The solutions depends on
a) do you want to reflect just the Investment re-valuation - the movement in the paper value, or
b) do you want to reflect the “unrealised” gain/loss as Income

The recommendation would be (a), otherwise if you use your P&L for tax return purposes (actual gains/losses), then the inclusion of unrealised transactions could cause you problems.

To do (a), under BS Assets create an “Investment Holdings - Market Value” account and under BS Equity create an “Investment Holdings - Revaluation” account. Then via Journal you would post the month end unrealised gain/loss between these two accounts. At each month end you would edit the previous month journal by changing the date and the new revaluation amount

The Assets would look like this

The Equity would look like this

This way only actual gains & losses are reflected in the P&L and the paper gains & losses are reflected in the BS