[kmymoney] [Bug 396301] Investment Performance by Account YTD Return on Investment result different between version 4.8 and 5.01

[Jon]

https://bugs.kde.org/show_bug.cgi?id=396301

Jon <CloudDriver46 at gmail.com> changed:

           What    |Removed                     |Added
----------------------------------------------------------------------------
         Resolution|WAITINGFORINFO              |---
             Status|NEEDSINFO                   |REPORTED

--- Comment #6 from Jon <CloudDriver46 at gmail.com> ---
Thanks for advising that I neglected to mark my previous comment (Comment 4) as
“Reported”.  Please refer to that comment for other details if necessary.

The first issue with the Investment Performance reports is that the Return on
Investment is only calculated correctly when the Date Range selected is either
All Dates or a Date Range that begins with or earlier than the first Buy
transaction.  All other Date Ranges calculate an incorrect Return on
Investment.  The reason for the incorrect result is that the Starting Balance
for these other Date Ranges is calculated by KMyMoney as the number of shares
held on the report’s beginning date multiplied by the share price on that date.
 The correct value for the Starting Balance should be the original Buy Value of
those shares, not the Buy Value +/- any gain/loss in share price as of the
beginning date.

The second issue with the Investment Performance reports is that the Dividends
Reinvestment value is being calculated as if it were a Buy Value, which results
in an incorrect Return on Investment.  Buy Value is the amount of cash that an
investor uses to purchase new shares.  Shares added to the investor’s account
by the mutual fund in a Dividend or Capital Gain distribution are not a
purchase made by the shareholder.  The value of shares added in a reinvestment
is correctly accounted for as a part of the total number the shareholder owns. 
The Dividends Reinvested value should not be used in any additional way in
calculating Return on Investment.

Dividends Paid Out are cash in the investor’s hand and this value is correctly
calculated by KMyMoney as a gain in the Investment Performance reports.

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