Trading accounts - when do they make sense?

[whwtan]

Hi Ian

Thank you for the really detailed reply.

Where I get lost with this style and subsequently felt forced to go into 
creating head expense accounts all different currencies is when I change 
locations. I do readily admit that I'm one of the less common folks.

Say if I were using USD for a month and had it as my primary currency in 
Expenses, that'd be fine. But next month, because I'll be in Australia, 
all my expenses would be in AUD. I am then being prompted for exchange 
rate every single time I enter a transaction...*ouch*

I really love the idea of just being able to enter expenses and just use 
the currency in the expense dialog box but I figure that's going to make 
it extremely difficult to track things down the road.

William

On 9/7/2012 11:56 PM, Ian K wrote:
> Following on, I think it makes sense for most home users to keep expenses in
> the base (home) currency, and just use foreign currency accounts for assets
> and liabilities e.g. foreign cash/bank accounts/credit cards/loans etc.
> Therefore expenses would not change as rates move, but as the value of the
> foreign currency assets or liabilities change as rates move then the net
> worth will fluctuate accordingly, and this will be shown on the Balance
> Sheet as Trading Gains or Losses.
>
> This of course applies equally as well to holdings of stocks or bonds (i.e.
> domestic not just foreign) - the value of these move and Trading Accounts
> will allow this movement to be reflected properly.
>
>
>
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