Realized Investment Gains (Losses) Report — Complete User Guide — Two Accounts Web

A comprehensive, report-centric guide covering how a user reaches Reports > Realized Investment Gains (Losses), every field on the report, how the figures are calculated from the underlying investment cost engine, and how the report complies with accounting regulations.

Table of Contents

1. What Is the Realized Investment Gains (Losses) Report?
2. Prerequisites Before You Can Run It
3. Enabling the Report via the Customize Menu
4. Related Configuration in Settings
   • Investment Control Account
   • Realized Capital Gains Account
   • Chart of Accounts Settings
   • Opening Balances and Sale Transactions
5. Creating the Report — Step by Step
6. Field-by-Field Guide
7. How Each Value Is Calculated
   • Units Disposed
   • Cost of the Disposed Units
   • Average Cost at Disposal
   • Consideration Received
   • Realized Gains or Losses
   • Total Row
8. Sample Data and Output
   • Sample Setup
   • Step-by-Step Calculation Walkthrough
   • Report Output
   • Loss Example
   • Multi-Period Example
9. Effects on the Rest of the System
10. Behaviour Nuances and Cautions
11. Accounting Regulation Compliance

1. What Is the Realized Investment Gains (Losses) Report?

The Realized Investment Gains (Losses) report shows the profit or loss actually earned when investments were sold (disposed of) during a period you choose. A realized gain or loss arises the moment an investment is sold: it is the difference between the proceeds actually received and the cost the business had invested in those units.

The report answers the question: “When we sold investments in this period, how much did we actually make or lose, and on which investments?”

Key characteristics of this report:

• It is a period-based report — it covers disposals dated between a start date and an end date.
• It is a disposal-focused report — it only lists investments that had a sale in the period.
• It reports on the cost basis of the units sold — the gain/loss is proceeds minus the weighted-average cost of the sold units.
• It is read-only — it does not post or change any accounting entry by itself.

2. Prerequisites Before You Can Run It

Before the report is meaningful, the following must be in place:

1. The Investments tab must be enabled from the Customize Menu (otherwise the report does not appear). See Section 3.
2. At least one Investment must exist (with a name; optionally a code).
3. Each investment must have a cost position built up from opening balances (with quantity), purchases, and at least one sale recorded with a negative quantity. Only actual disposals produce realized gains/losses.
4. The sale must be entered on an investment account (the investment’s control account or the default “Investments, at cost” account) so that the system treats it as an investment disposal.

3. Enabling the Report via the Customize Menu

The Realized Investment Gains (Losses) report sits under the Reports navigation area, within the Investments category. Its visibility is controlled by the same Investments switch used for the other investment reports.

1. Open the Customize Menu (the customize button on the top-right of the navigation bar).
2. Find the “Investments” switch in the list of available areas.
3. Toggle it to Visible / On.
4. Click Save or Apply.

You do not additionally need the Investment Revaluations switch for this specific report — realized gains are driven by sales, not by revaluations. (The Investment Revaluations switch controls the unrealized-gains report and the revaluation worksheet instead.)

4. Related Configuration in Settings

4.1 Investment Control Account

Where: Settings > Control Accounts, or created when the first Investment is added.

The report draws its data from the transactions recorded on investment accounts — the built-in “Investments, at cost” account or a custom Control Account for Investments. A sale is only recognized here if it was posted to one of these accounts and linked to the specific investment.

4.2 Realized Capital Gains Account

Where: Profit and Loss > “Realized investment gains (losses)” (one of the investment system accounts).

When a sale is recorded, the system automatically recognizes the resulting gain or loss on this Profit and Loss account. The amount shown on this report for each investment equals the balance that flows to this account for that investment’s disposals in the period.

4.3 Chart of Accounts Settings

Where: Settings > Chart of Accounts.

You can rename or regroup the investment-related accounts (for example, the realized gains account etc) or create custom account. The report itself still reads the underlying disposal data, so renaming accounts changes labels elsewhere but does not change how the disposal amounts are computed.

4.4 Opening Balances and Sale Transactions

Where: Settings > Opening Balances, and Receipts/Payments or Journal Entries for the sale.

• Opening balances must include a Quantity so that the average-cost basis is maintained from the start of the position.
• Sales must be entered with a negative quantity on the investment account, with the proceeds as the amount. The system automatically derives the cost of those units and the resulting gain/loss.

5. Creating the Report — Step by Step

1. Ensure the Investments area is enabled (Section 3).
2. Open the Reports area from the navigation bar.
3. Scroll to the Investments category and select “Realized investment gains (losses).”
4. The system shows the list of previously created reports (each identified by its From Date and To Date).
5. Click the “New Report” button.
6. Enter the From Date — the first day of the period (required).
7. Enter the To Date — the last day of the period, inclusive (required).
8. Optionally enter a Description — a free-text label for your own reference.
9. Save. The new report is added to the list.
10. Open (View) the report to display the disposals computed for that period.

6. Field-by-Field Guide

6.1 Fields You Set When Creating the Report

6.2 Columns Shown on the Report

The report is a table with a row per disposed investment and a Total row at the bottom.

7. How Each Value Is Calculated

The report is generated by replaying each investment’s sale transactions inside the chosen period and applying the system’s weighted average (moving average) cost engine to those disposals. Purchases earlier in the life of the position establish the average cost used at the moment of sale; revaluations do not enter this calculation.

7.1 Units Disposed

Units Disposed = the total quantity sold in the period
                 (the sum of the negative-quantity sale entries on the investment account)

7.2 Cost of the Disposed Units

Cost of Disposed Units =
     Consideration Received  -  Realized Gains (Losses)

Equivalent in principle to:
     Weighted-Average Cost per Unit  x  Units Disposed

The cost of the units sold is removed from the investment’s cost basis using the average cost in force at the time of each sale. The system keeps the investment account’s balance at exactly the remaining cost after a disposal, posting an automatic correction so that the difference between proceeds and that cost is recognized as the realized gain/loss rather than being left inside the asset account.

7.3 Average Cost at Disposal

Average Cost = Cost of Disposed Units / Units Disposed
               (rounded to base-currency decimals)

7.4 Consideration Received

Consideration Received = total proceeds from the sale(s) in the period
                         (the aggregate amount credited to the investment account)

7.5 Realized Gains or Losses

Realized Gains (Losses) = Consideration Received - Cost of Disposed Units

  Consideration > Cost  ->  Gain (income)
  Cost > Consideration  ->  Loss (expense)

This is the amount the system automatically posts to the Realized investment gains (losses) Profit and Loss account for the disposal. The underlying accounting journal for a profitable sale is:

Dr  Bank / cash received from the sale                  (proceeds)
    Cr  Investment account                                (proceeds)

Automatic cost correction (removes the cost basis):
Dr  Investment account  /  Cr  Realized investment gains (losses)   (the gain)
   (for a loss the direction of these two lines is reversed)

Net effect on the investment account = - (cost of the units sold)   ✓ balanced

7.6 Total Row

A Total row sums the Total Cost, Consideration Received, and Realized Gains (Losses) columns. Quantity and Average Cost are per-unit figures and are not totalled.

8. Sample Data and Output

The base currency is BDT.

8.1 Sample Setup

Transactions that establish the cost positions (before the sale):

Sale (disposal) transactions during the reporting period:

8.2 Step-by-Step Calculation Walkthrough

ABC Corporation Shares

XYZ 5% Bonds 2030

8.3 Report Output

Realized Investment Gains (Losses) — for the period 01-Jan-2026 to 30-Jun-2026

Verification of the figures:

ABC:  Avg cost = 77,500.00 / 1,500 = 51.67
      Cost of sold = 51.67 x 300 = 15,500.00
      Realized gain = 18,000.00 - 15,500.00 = 2,500.00  ✓

XYZ:  Avg cost = 61,000.00 / 300 = 203.33
      Cost of sold = 203.33 x 50 = 10,166.67
      Realized gain = 11,000.00 - 10,166.67 = 833.33  ✓

Totals:
      Total cost = 15,500.00 + 10,166.67 = 25,666.67  ✓
      Consideration = 18,000.00 + 11,000.00 = 29,000.00  ✓
      Realized gains = 2,500.00 + 833.33 = 3,333.33  ✓
      Cross-check: 29,000.00 - 25,666.67 = 3,333.33  ✓

Balanced auto-entries for the period (each disposal):
      ABC:  Dr control account 2,500.00 / Cr realized gains (losses) 2,500.00
      XYZ:  Dr control account   833.33 / Cr realized gains (losses)   833.33
      Each entry is internally balanced (Debits = Credits).  ✓

8.4 Loss Example

Had ABC shares been sold for 40.00 instead of 60.00, the same cost basis would produce a loss:

Proceeds = 300 x 40.00 = 12,000.00
Cost of sold = 51.67 x 300 = 15,500.00
Realized loss = 12,000.00 - 15,500.00 = (3,500.00)   (shown in parentheses)

8.5 Multi-Period Example

Extending the sample into Year 2 (01-Jul-2026 to 30-Jun-2027) demonstrates the interaction with revaluations.

Calculation using the cost basis (revaluation does not affect the cost):

Cost position before the sale:
  Remaining cost = 50,833.33 (unchanged by revaluation)
  Qty = 250
  Avg cost = 50,833.33 / 250 = 203.33

Cost of the 50 units sold = 203.33 x 50 = 10,166.67
Consideration received = 50 x 240.00 = 12,000.00
Realized gain = 12,000.00 - 10,166.67 = 1,833.33  ✓

After the sale:
  Remaining cost = 50,833.33 - 10,166.67 = 40,666.66
  Remaining qty = 250 - 50 = 200  ✓
  Auto entries: Dr control account 1,833.33 / Cr realized gains (losses) 1,833.33  ✓ balanced

Report Output — for the period 01-Jul-2026 to 30-Jun-2027:

9. Effects on the Rest of the System

The Realized Investment Gains (Losses) report is derived — it reads disposal data and does not create entries. Its genuine impact is on validation and presentation across the accounts:

10. Behaviour Nuances and Cautions

• Period filter (inclusive). Only disposals with dates between and including the From Date and To Date are shown.
• Cost basis excludes revaluations. Realized gains/losses are always computed on the weighted-average cost, never on the revalued carrying amount. Revaluation records therefore do not change the numbers here.
• Sales before any holdings. A sale that reduces below the held quantity, or a disposal of a quantity the system cannot reconcile against an existing position, may produce unexpected figures — keep opening-balance quantities complete so the cost basis is correct.
• Multiple sales of the same investment. All disposals in the period are aggregated into one row per investment; the quantities and amounts are summed.
• Zero rows are hidden. Investments with no disposal in the period simply do not appear; the report lists only investments that were actually sold in the window.
• The report is a snapshot of the period. It reflects records as at the reporting moment; create a new report with new dates to see a different window.
• Not a posting tool. The report never changes accounting data. The gains/losses it shows come from sale transactions recorded through the normal entry screens.

11. Accounting Regulation Compliance

The measurement and presentation of realized gains/losses on investment disposals in this system are consistent with the main accounting frameworks for financial instruments.

11.1 Derecognition and Gain Recognition — IFRS 9 / IAS 32

Requirement: A financial asset is derecognized when the contractual rights to the cash flows from it have expired or are transferred. On derecognition, the difference between the carrying amount allocated to the disposed units and the consideration received is recognized in profit or loss.

Alignment: The report triggers on actual sale transactions (derecognition events) and computes the difference between proceeds and the cost allocated to the sold units. The resulting gain or loss is recognized in the Profit and Loss account automatically — no manual journal is needed to realize the result.

11.2 Cost Basis — Weighted Average Cost

Requirement: Where individual cost is not reliably tracked for fungible units (e.g., shares and bonds), an acceptable cost-flow method such as weighted average cost is used to allocate cost to disposals.

Alignment: The system maintains a running weighted-average cost per investment and removes exactly that cost when units are sold. This produces a defensible, auditable cost basis that ties to the ledger, and excludes revaluation increments so that realized results are kept on a pure cost footing.

11.3 Statement of Cash Flows — IAS 7

Requirement: Acquisition and disposal of investments are investing activities; proceeds from disposals are reported there.

Alignment: Disposal proceeds are classified under Investing Activities. The related gain/loss is a non-cash difference and is not treated as operating cash flow, matching IAS 7’s treatment.

11.4 Foreign Currency — IAS 21

Requirement: Non-monetary items (such as equity investments) measured at historical cost are translated at the exchange rate ruling at the transaction date; gains and losses on disposal reflect their own currency effects.

Alignment: Proceeds are captured at the disposal transaction’s own amounts (converted at the historical exchange rate used when the sale was recorded). The realized result therefore reflects the economics of the actual disposal without a separate foreign-exchange split, consistent with the non-monetary treatment of equity investments.

11.5 Presentation — IAS 1

Requirement: Gains and losses on financial assets, and their separate presentation where material, contribute to a faithful presentation of profit or loss.

Alignment: Realized gains/losses are presented separately from unrealized (revaluation) results in dedicated accounts and reports, giving users a clear, disaggregated view of what has been earned in cash terms versus what remains a paper gain.

11.6 Realized vs. Unrealized Distinction — IFRS 9 / IAS 1

Requirement: Reporting quality is enhanced when completed (realized) outcomes are distinguished from fair-value changes on holdings that continue.

Alignment: The system cleanly separates the two: this report covers realized results from sales, while the Unrealized Investment Gains (Losses) report covers fair-value adjustments on remaining holdings. Combined, they reconcile the full movement in investment asset value without double counting.

End of Realized Investment Gains (Losses) Report Guide