Investment Gains & Losses

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neilw41
neilw41 Registered Posts: 12 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hi

I have to calculate some realised & unrealised gains & losses on our investments.

I am struggling to find the best approach.

Investment cost £3,430,200
Investment Disposal (including gain) £4,742,061
Investment Gain £1,398,624
Residual Value £86,762

How can I find a realised & unrealised gain, (without unitising anything).

Thanks

Neil

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  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    neilw41 wrote: »
    Hi

    I have to calculate some realised & unrealised gains & losses on our investments.

    I am struggling to find the best approach.

    Investment cost £3,430,200
    Investment Disposal (including gain) £4,742,061
    Investment Gain £1,398,624
    Residual Value £86,762

    How can I find a realised & unrealised gain, (without unitising anything).

    Thanks

    Neil


    There is some information missing from your question,

    clearly there is an investment gain of £1,398,624

    to establish if that gain gas been realised we need to know that the total disposal amount of ££4,742,061 has been received from the customer and paid into the bank account.

    If any part of £4,742,061 has not been received then there will be UNREALISED gain

    hope this helps
  • neilw41
    neilw41 Registered Posts: 12 Regular contributor ⭐
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    Investment Gains & Losses

    Thanks for your reply and question. All of the disposal amount had been received in cash, therefore there is a realised gain included in this amount, as there is a residual amount of investment left, there is also an unrealised gain gain included in this amount, c£86k. Thanks.
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
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    neilw41 wrote: »
    Thanks for your reply and question. All of the disposal amount had been received in cash, therefore there is a realised gain included in this amount, as there is a residual amount of investment left, there is also an unrealised gain gain included in this amount, c£86k. Thanks.

    There is no residual value left. It is a coincident that the amount the asset is depreciated is also very very similar to residual value

    Disposal amount (sales value) 4,742,061
    less investment gain ............ 1,398,624

    equals Net book Value ......... 3,343,437

    less investment at cost.........3,430,200

    =accumulated depreciation.........86,763


    Residual value is only used to calculate the depreciation expense on a straight line method.

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