That could be interesting for 2021 since I bought quite a few USD to invest in a mutual fund but for 2020 there are just 2 currency conversion and nothing large enough to "hide" a profit of 22.8 EUR. In 2020 I only bought funds in EUR and not sold anything. No sale, nothing to record, right?
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.
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 [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.
