Balance sheet unrealized losses

[Paul Nadolny]

Thanks Ian.

You understood exactly what I was asking. MZN is local currency and I must
use it as the base currency and do the reports with it. So now I can look
from MZN point of view and the loss of value of USD is a gain for MZN. That
was an excellent piece of advice. Thank you very much!

Now the next question is not so urgent. How do I explain the different
"total assets" of the balance sheet when it is different from the "total
assets" of last year? I have been working on this but cannot fathom the
logic.

Lets say I have a total balance sheet asset of MZN 30.000,00 at the end of
last year and at the end of this year the total balance sheet asset is MZN
20.000,00. So the overall value of my operation has lost MZN 10.000,00.
During the year the USD assets have lost value from drop in currency
exchange rates. I think that this is called "unrealized loss" because if
the exchange rate of USD goes up again, the USD assets that are in the bank
will give me more MZN. But is it possible to calculate the difference? I
checked all the reports but can't see anything that helps.

Who know's maybe this is not even important. What do you think?
Paul




On Sat, Nov 2, 2013 at 8:32 PM, Ian K <ik522000 at yahoo.co.uk> wrote:

> Paul - Glad using trading accounts has hepled.
>
> Is MZN the local currency in GnuCash? If so that might explain the trading
> gains.
> If the MZN has devalued, then MZN assets have lost money, but that won't
> show as a trading loss, as it's the local currency.
> However if you have foreign assets E.g. USD, then the value of those will
> have appreciated in MZN terms which would show up as a trading gain.
>
> It depends which way round you are working, if you see what I mean...
>
> Otherwise without knowing exactly what you're doing I'm not sure!
>
>
>
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