Balance Sheet and Retained Earnings

[replicon]

Hi all,

I'm in the final stages of pulling the financial tracking for my side
business (commercial property) into gnucash. Everything is basically done,
but one final thing came up when working back and forth with my accountant
on setting things up:

I generated a Balance Sheet report for him, and he mentioned he's surprised
to see Retained Earnings on there. His exact words:

"the Balance sheet looks good save for “retained earnings.” This isn’t
really a partnership equity account (it’s used in corporations), it’s
actually just your p&l (or net income/(loss)) which is then closed out to
the capital accounts at year end (we do this)."

If I'm reading that correctly, he wasn't expecting what appears to just be
"income - expenses" to show up as an equity component on the balance sheet,
because that gets tacked on through the profit/loss.

I figured I just needed to go into the report settings and uncheck some
checkbox, since these things are typically pretty configurable in GNUCash,
but said checkbox doesn't seem to exist.

So my question to you is:

Does GNUCash Balance Sheet just always include "Retained Earnings", or is it
driven by either a setting I haven't found yet, or perhaps something based
on the way I set up my CoA?

When I asked if it'll be an issue, he did mention this was semantics and
that I shouldn't worry too much about it, but... if there's a checkbox
somewhere that will make my accounting more correct, then well, I want to
find it hehe.

Thanks for all the help so far; this list has been really useful, and I want
to say I appreciate the time people put in. :)

cheers,
Tamas



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