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How to record personal portfolio appreciation?

Personal Finance & Money Asked by WIIZZPL on July 5, 2021

I’d like to know how to record for the appreciation of my investment portfolio.
The idea of not recording it; and then recording it as revenue once I sell it seems a bit off to me.
I plan to hold my shares and bonds for a long time, possibly never selling them; Thus the recognition of the increase in value using that method will happen very far out into the future if I even ever sell.

One solution I’ve found is to do it just like depreciation with the "Accumulated Appreciation." and -"Appreciation Revenue.".
It did sound like a good idea to me however, once I was implementing it, I encountered some problems and didn’t found any answers for them:

  • What to do if the market price goes down? Should I debit "Appreciation Revenue."?
  • And how to record it on my income statement? I’ve seen people say that you shouldn’t record appreciation on it at all because it’s not a "normal gain". But the increase/decrease in value will happen every month since I never plan to sell, so in that sance it would be normal.

This is for my personal bookkeeping that I do on my own in Excel.
The accounting periods last one month, with an additional annual report.
I would love to be able to see the current market value of my portfolio on the balance sheet.

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