On Sunday, 8 July 2018 00:54:24 UTC+5:30, Martin Blais wrote:
>
> To fully automate this, you'd have to decide which of the TRY you're
> spending, e.g. from previous exchanges.
> That's way overkill.
> A better way is to convert, as you do.
> You could write a script to extract and insert exchange rates at every
> date you are spending TRY to get a more accurate conversion, and then
> report in BGN using CONVERT().
>
This is why I see non-speculative currency transactions as the same as
speculative currency transactions, with the main difference being that the
former is, in practice, "average cost basis", rather than FIFO or LIFO. If
you exchange money twice and 2 different rates, and then spend that money,
your mental model is that of average cost between the two exchange rates,
and not FIFO/LIFO.
The justification given by Martin for having different notations for
non-speculative currency conversions — @ — and for speculative investments
(including for currency) — {} — is that the "mental model" for the former
doesn't involve lots while the mental model for the latter does.
I beg to disagree. As this thread shows, people might not be thinking about
"lots" while they are spending the converted currency, but they do want to
know the cost in the base currency, which requires lots. So, the main
difference, in my opinion, is that the lots involved in (non-speculative)
currency conversions are average-cost basis in our mental models, while
FIFO/ACB/LIFO is determined primary by securities/tax laws for other kinds
of investments.
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