Exchange rate changes lead to imbalance
Dolfy
d01fy at yahoo.com
Fri Aug 28 07:46:42 EDT 2009
Hello,
Ver. 2.2.6
If you have multi-currencies or have stocks on your balance sheet, and their daily rate changes, the balance-sheet will go out of balance. Example:
I have 1 Eur only, and my B/S is in HUF currency.
Assets: HUF 280
EUR: EUR 1
Equity: HUF 280
Now if the exchance rate changes from 1 EUR=280 HUF to 1 EUR=290HUF, I will have
Assets: HUF 290
EUR: EUR 1
Equity: HUF 280
which is clearly out of balance. Same with stocks and other commodities. Maybe some balancing transactions had to be introduced to handle this properly...
Thx, Dolfy
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