some hand holding please

[Bruce McMillan]

Seeking reassurance that there is not an obvious error 
	- for a couple days I thought there must be an error, Profit gets
added to previous year's Retained Earnings, right! Doesn't seem to tho. Then
I thought, well maybe it doesn't if there is exchange rate variation....

So please if I can be reassured that these numbers are not impossible...

AUD Micro-manufacturing business. Bank accounts in AUD & USD. Lots of
purchases in USD from both AUD & USD accounts.
Trading Accounts enabled. "Nearest in Time".

Year 1

P&L Profit:  	-$7,749
Retained Losses: 	-$7,749
Trading Losses:   -$8,072

Exch Rate: 		1.18 (at end of period)

Year 2

P&L Profit:		-$36,308
Retained Losses: 	-$58,972
Trading Gains:	 $9,876

Exch Rate:		0.93 (at end of period)

Retained Losses grew by $51,223 to $58,972 whilst Year 2 Profit was just
-$36,308.
Clearly, Profit has not just been added to accumulate Retained Earnings. 
Is this the explanation: the US Funds at YE Year 1 have been re-valued due
to the substantial exchange rate variation in Year 2??
And Trading Gains/Losses never get expressed inside Retained Earnings. They
standalone. Right??

Mind-numbed.