Advanced Portfolio - even more problems

[Mike Alexander]

--On July 16, 2015 at 10:39:43 AM +1200 dunbrokin <dunbrokin at gmail.com> 
wrote:

> Back to BBBY of which the client holds 523 in their portfolio. The
> basis of this holding in NZ$ today is around NZ$45,750. Now if I go
> back to look at the basis value of the holding in  December 2014,
> then the value is NZ$40,125 - no shares have been bought or sold. So,
> this basis has changed by NZ$5,000 (as in increased) at a time when
> the value of the NZ$ against the US$ has fallen from 1NZ$ = US$.76 to
> 1NZ$=US$.66. What am I missing here?

Judging from your previous question, this is a stock that is traded in 
a currency other than the currency of the report.  I.e., BBBY is traded 
in USD but your report currency is NZD.  The report calculates the 
basis of BBBY in USD and then converts it to NZD using an exchange rate 
determined by the option you have set for the report and the contents 
of the price data base.  If you have chosen "nearest in time" as the 
price source, then the NZD/USD exchange rate will be the one nearest to 
the report's data.  Even though the basis of BBBY in USD won't change, 
the basis in NZD will change since the USD/NZD exchange rate changes.

This isn't the only way this could be done, and perhaps isn't the best 
way, but it's the way it works now.  It might be better to use a 
USD/NZD exchange rate closest to the date of the transaction that 
affects the basis when adjusting the basis.  There are probably other 
problems with the report if you have stocks traded in currencies other 
than the report currency.

             Mike