Ending Market Value = Beginning Market Value
+ Net Contributions
+ Gains&LossesNet Contributions = Contributions - WithdrawalsG&L = Income
+ Net Capital Gains&LossesNet Capital Gains&Losses = Sales - Purchases
+ Ending Market Value Securities
- Beginning Market Value SecuritiesEnding Cash Balance = Net Contributions + Income + Sales -Purchases
- Valuation: Accounting G&L are calculated based on cost prices at the time each security was purchased. When calculating investment returns, all securities are considered at theirmarket prices.
- Time Period: In calculating accounting G&L, the holding period of securities are relevant (because different holdings periods are mixed, an inventory model such as LIFO has to be specified additionally. The calculation of investment returns refers to a specific calendar period (for example, "monthly")and stocks and flows during this period only are relevant.