Frank In that case you should be concerned as the trading account balances are currently reported under equity in the Balance sheet.
The attached is a Balance sheet run on a dummy book I created Trading_Test_BalSheet.png <http://gnucash.1415818.n4.nabble.com/file/t375329/Trading_Test_BalSheet.png> The dummy book is attached as well Test_trading.gnucash <http://gnucash.1415818.n4.nabble.com/file/t375329/Test_trading.gnucash> The amount shown under Equity as trading losses is the sum of the balances of the trading accounts in AUD and USD expressed as AUD after a couple of dummy transfers from AUD->USD->AUD and USD_>AUD->USD with changes in the exchange rate between them. The IFRS and FASB both require trading gains/losses where trading is the main operation of the entity to be reported as Other Comprehensive Income whereas incidental trading gains and losses where they are not main activity of the business are normally reported through normal profit and loss. The situation is different for companies and for individuals at least in Australia as individual's capital gains are taxed here at an individuals marginal tax rate (variable stepped scale depending on assessabletaxable income) whereas capital gains in companies are taxed at the company tax rate. The IFRS is like most standards/legislation difficult to make sense of unless you have a glossary and the inital definitions etc all open at once. The Australia standards pretty well follow the IFRS but there will be some excpetions and the FASB is trying to converge on the IFRS and has apparently in this area. From what I can gather the HGB is also IFRS based but the question is how closely. Iy seems in most cases there are situations where it is reported in income and others where it is reported in equity. I will start sorting through the legisaltion and see if I can tabulate the requirements in a few major jurisdictions cf the IFRS requirements. Might take a while to do. I can track down the Australian situation for companies fairly easily as my daughter is a company accountant and handles reporting on it all the time. I seem to remember a lot of discussion fairly recently in the last couple of years when Chris was updating various reports in either the Dev or User forums. I'll track that down to see what light it sheds on the situation. David ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list [email protected] 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.
