On 1/15/2020 10:56 AM, Christian Lynbech wrote:
Inspired by a recent discussion I would like to understand better how to handle
the Retained Earnings equity sub account, as I am new to both Gnucash and
accounting.
In a world where books are closed at year end, I would understand Retained
Earnings as sort of the surplus of the year that is then added to the equity so
one starts the next year with a higher equity than the year before.
When using Gnucash the recommended way of just keep going, there is not any
real need to distinguish the year end result, it just goes into the rolling
development of the accounts.
However, at least here in Denmark, it is required for a company to produce a
statement of balance and result, how could one handle that? Just make a report
at year end that extracts the relevant numbers or simulate the closing of the
books by moving the appropriate amount to Retained Earnings and then move it
out again when the new year starts up?
No, you just run the appropriate reports.
It is going to help greatly if you tell us what a Danish "Statement of
balance and result"might be. This is a terminology issue, just as the
report called "Income Statement" in gnucash would be called "Profit and
Loss" by a for profit entity and "Statement of Revenues and Expenses" by
a non-profit entity. So we have trouble telling you which report(s) to
run to get a "Statement of balance and result".
What would be shown by this report? Is it for a point in time or for a
time interval? Etc.
Michael D Novack
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