Foreign currency accounts and transactions.

[David T.]

Adam--

I might be wrong on this (usually I am), but it would seem to me that
Assets:Cash:USD has USD100 in it, whether it's the end of August, September, or
the End of Time.

You don't *have* any GBP in that account; it's USD. If you exchange your USD100
for GBP, well, *then* there will be a transaction with an associated exchange
rate, and that will determine the GBP you have. Until that point, however, you
have USD100.

I have heard the term "Unrealized Gains" used for what you're getting at in
#3--they don't exist except in concept.

David


--- Adam Funk <a24061 at yahoo.com> wrote:

> On 2006-09-07, Derek Atkins <warlord at MIT.EDU> wrote:
> 
> >> How in the world can the accounts balance when I forget to E-E-R?
> >
> > The TRANSACTION is balanced, which is all GnuCash is checking at the
> > moment.  However it's not balancing in terms of changes-in-capital.
> > But GnuCash doesn't check that now.
> 
> Does this mean that if (for example)
> 
> 1. at the end of August, I have USD100 in Assets:Cash:USD and the most
>    recent rate in the price editor is 0.55, so my balance sheet shows
>    GBP55.00 in that account;
> 
> 2. at the end of September, I still have USD100 there, but I've added
>    a newer rate of 0.58, so my balance sheet shows GBP58.00 in that
>    account;
> 
> then
> 
> 3. the value of that asset has risen by GBP3.00 but without anything
>    in the Income accounts to match it?
> 
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