Hi Michael, On Sat, 27 Mar 2021 at 18:11, Michael or Penny Novack < stepbystepf...@comcast.net> wrote:
> There is an issue with keeping multiple currencies in the same set of > books that I have not yet seen discussed in detail, Namely that exchange > rates are not constant over time. > There is some discussion in an unusually detailed bug report https://bugs.gnucash.org/show_bug.cgi?id=797796 -- this originates in GnuCash's transaction currency being permitted to be any currency. e.g. if your home currency is USD, but transfer GBP to EUR, the UI will record only GBP/EUR fx. The new method would enforce the transaction currency to be USD therefore your GBP->EUR would require GBP/USD and EUR/USD fx rates. Thus, w.r.t. USD, all fx gains/losses are recorded accurately. To fix this would be an enormous amount of work and invalidate a lot of code, but would definitely simplify and fix a lot of code too IMHO. > Let's say at time T when the exchange rate between $ and EUR is > $1.30/1.00 EUR. You take 1000 EUR and buy 1300 dollars. At THIS point in > time, just a transfer between assets, no transaction affecting > income/expense, so no affect on equity. Let's say no transactions from > then on. > > Now we come to the end of the year, at which point let's say the > exchange rate is $1.25/1 EUR. Those $1300 are no longer worth 1000 Eur. > They are worth 1040 EUR. Your equity has gone up by 40 EUR. > > I will stop here because the issue of how "unrealized gains/losses from > changes in exchange rate" will be treated is not a gnucash issue. It's > exactly the same no matter what accounting software you use or even old > fashioned pen and ink on paper. > > Michael D Novack > > > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.