Understanding the Balance Sheet - Unrealized Gain?

[Derek Atkins]

bunk3m <bunk3m at gmail.com> writes:

> Hi.
>
> I have setup two currencies as I had one client who paid in USD and I'm
> using CAD.  I had a USD bank account, USD A/R, USD Income.  The only
> expenses in USD were some bank charges.  I did update the USD/CAD
> exchange rate monthly when I had bank fees or when I moved $ from USD
> Check to CAD Check using the actual currency rate for the transaction.
>
> I notice in the balance sheet that I have an "Unrealized Gain" (never an
> "Unrealized Loss").
>
> On every line in the Balance Sheet, I can click and see the transactions
> that made up that balance.
>
> How does one go about understanding which transactions created the
> "Unrealized Gain"?

The transactions between the currencies.  The 'gain' is the change in
value that occurs.  For example, I buy €100 for $125 on Feb 1.  On March
1 those €100 are worth $130 (because the exchange rate changed).  That's
an unrealized gain of $5.

> Thanks
> B.

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-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available