GREY:HRIVF - Post by User
Comment by
espressostrettoon Nov 16, 2009 2:53pm
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Post# 16491720
RE: RE: RE: Write Down??
RE: RE: RE: Write Down??Whether it is a paper profit/loss (unrealized) is irrelevant, it has to be marked to FMV (if determinable) per GAAP, and the only way the accounting will work is if it passes through the Statement of Operations. Taken on a single number basis of total income/loss, yes, it looks like "earnings" are down, this will hide the earning power of the company. So it is not entirely an Decrease in Net Asset from (Regular) Operations, but I believe almost an Extraordinary Item, or Other Income/Expense as they put on the Income Statement.
If you were to draw up your own Balance Sheet. If all you owned was HRG which you bought at $100 during October, and at Oct 31 is worth $200, your Balance Sheet at Oct 31would should $200, and your Statement of Operations would show an increase of $100 for the October time period. If HRG then went to a FMV (fair market value) of $150 at November end, your balance sheet as at Nov 30 would show $150; a monthly statement of operations for November alone would show a $50 decrease, but a two-month statement of operations for Oct and Nov would show a $50 increase.
Hope this helps.
Use a grain of salt with anything I say as I am not a professional and can use terms vaguely or stretch their definition.