Exchange rate changes lead to imbalance

[Mike Alexander]

--On August 28, 2009 4:46:42 AM -0700 Dolfy <d01fy at yahoo.com> wrote:

> 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...

This is probably because of the issues described at 
<http://www.mathstat.dal.ca/~selinger/accounting/tutorial.html> and 
<http://www.mathstat.dal.ca/~selinger/accounting/gnucash.html>.  I've 
implemented some of the suggestions in the latter document, but the 
patch has never become part of the official Gnucash and is now somewhat 
out of date.

       Mike