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Market price adjustments are generally recorded at the end of the accounting period to adjust the book value of investments that are still held to their current market value.
The adjustment is based on the difference between the book value of the investment and its market value. If the market value is higher than the book value, the difference is recorded as an unrealized gain. If the market value is lower than the book value, the difference is recorded as an unrealized loss.
The adjustment is recorded using the Investment Balance Sheet Account assigned to the Item and the appropriate income or expense account. The investment remains in the portfolio; the adjustment changes its book value but does not change the Quantity held.
You can automatically create the required adjustment transactions using the Create adjustment transactions extension.
