John Wiegley <[email protected]> writes: > On Jul 30, 2010, at 5:07 AM, Roel Vanhout wrote: > >> So this is only for currency fluctuations? Because the 20$ movie >> example made it seem like it was about accounting for time value >> fluctuations. [...] > Let's give a quick example that is the actual reason for this idea: > > 2009-04-17 * Got KRW from the ATM > Assets:Cash 170000 KRW > Assets:Current -102.71 EUR > > 2009-04-18 * Business dinner > Expenses:Dining 165000 KRW > Assets:Cash > > So, here we exchange some EUR for KRW on 4/17. Today, if I valuate these > KRW, the value should in terms of today's price for EUR. > > But in the second transaction, I've spent some of those KRW. If today I > ask for a reporting of expenses in terms of EUR, I should use the price > of KRW from 4/18, not today.
In this particular example it should be price of KRW from 4/17 because it was when you bought the cash. The cash (but not only) becomes "final" from the moment you spend it back to the time you purchased it. A thought about tracking all this scares me. -- Miłego dnia, Łukasz Stelmach
