Stock Price / Exchange Rates Used while Closing Book

[John Ralls]

On Apr 16, 2011, at 3:49 PM, Prasad Marla wrote:

> Thanks David for the response - you made me realize I have not been clear
> enough in my post ...
> 
> My income / expense transactions include two currencies - as I have worked
> part of the year in another country. For closing the book, I have set up the
> closing accounts as per example below
> FY2011 Closing (CAD)
> Income 2011 (CAD)
> Expenses 2011 (CAD)
> Gnucash did the the carry forward and posted to two currency accounts (AUD
> and CAD) under the Income and Expense accounts. The roll up of these totals
> is using the last maintained exchange rate - rather than the rate maintained
> at 31/03/2011 - the closing date.
> 
> I think this has nothing to do with the the Close-Book operation in Gnucash
> - but just the way the account balances are converted to the parent account
> - guess this conversion will be always at the latest exchange rate.
> I think the only solution is  zeroing out the non-home currency account and
> carry forward account to the home currency account on the closing date -
> thereby preventing the auto conversion.
> 

So as far as Gnucash is concerned, you have two sets of income and expense accounts, one in CAD and one in AUD.
It created closing balances in each currency and transferred those amounts to a "balancing transaction". Did it convert the AUD amounts to CAD in that transaction, or did it leave them in AUD? 

Regards,
John Ralls