Comment on Introducing Console holdings
commented on
19 Jun 2019, 02:14 PM
P&L is calculated using FIFO because that is the correct P&L for taxation. As for allowing you to choose which holdings to liquidate, or the method of P&L calculation, any change would make no real difference. For example, let’s say you bought 10 mangoes at Rs.20 each and another 20 at Rs.10 each. Now, if you sell 5 of them for Rs. 8, the fact that you spent Rs.400 or the fact that you received Rs.40 will not change. You can assume that your loss is Rs.2 per mango on those 5 sold, or that it is Rs.12. In any case, the money spent and received does not change. When you eventually sell all your mangoes, what truly matters is how much you spent and how much you received.