Inability to correct GBP value for Euro priced shares
Maf. King
maf at chilwell.net
Thu Jun 8 16:02:10 EDT 2017
Hi Eric,
Sorry for being off the mark. It happened to me a while back that I was
getting a price for a symbol in USD not GBP because I'd missed the ".L" for a
London share - it seemed to me to be too much of a co-incidence that when gnc-
fq-dump looked up AIR (not AIR.PA) I got a USD figure that could be munged
close to your observed result.
If you are sure you're getting prices for AIR.PA then I'm at a loss.
what does the GC price editor give as the most recent values for the AIR.PA &
EUR/GBP prices?
Maf.
On Thursday, 8 June 2017 18:41:10 BST you wrote:
> Maf
>
> Thanks for taking the time.
>
> Airbus Group is Air.PA and it is that stock whose value I "collect".
>
> The difference between the €73.07 I quoted and "your" €73.50 is
> (probably) because the price I collected was from 31st May. I "froze" my
> accounts at that time to allow (some) certainty in my investigations.
>
> But your comment has raised another observation: I updated (on 7th June)
> my collected share values and AIR.PA had risen to €73.95 BUT the value
> of the 89 shares is still reported as £3989 (in the "Present GBP" column
> of the account listing). (The change in the value of holdings in GBP
> denominated shares did change in line with the updated prices.)
>
> In fact, an examination of the real value of the Airbus shares
> (expressed in Euros) ie €73.03 and the implied present value in GBP
> £3989/89 ie £44.82 implies an exchange rate of €1 = £1.62 which has
> never (I believe) been the case. It looks as if gnuCash is just making
> things up.
>
> Or, more likely, I'm totally misunderstanding what's happening.
>
> Eric
>
> On 08/06/17 15:04, Maf. King wrote:
> > Hi Eric,
> >
> > Are you sure you're getting the correct price for the shares?
> >
> > There's a stock called AIR which is (presently) USD 34.64, and given the
> > current $/£ rate makes 89 shares worth around £4k.
> >
> > You may be after the stock AIR.PA, showing right now as €73.50
> >
> >
> > gnc-fq-dump yahoo_europe AIR.PA
> >
> > Finance::Quote fields Gnucash uses:
> > symbol: AIR.PA <=== required
> >
> > date: 06/08/2017 <=== recommended
> >
> > currency: EUR <=== required
> >
> > last: 73.50 <=\
> >
> > nav: <=== one of these
> >
> > price: 73.50 <=/
> >
> > timezone: <=== optional
> >
> > HTH,
> > Maf.
> >
> > On Thursday, 8 June 2017 14:36:07 BST Eric Coates wrote:
> >> 8th June 2017
> >>
> >> I’m having trouble with getting a valuation (in pounds sterling –
> >> hereafter GBP – I am based in the UK) for a share I own that is priced
> >> in Euros.
> >>
> >> To bore you with the details my original account listing was of this
> >> form:
> >>
> >> Assets
> >>
> >> >My Assets
> >> >
> >> >>My Portfolio
> >> >>
> >> >>>My Cash
> >> >>>
> >> >>>My Shares
> >> >>>
> >> >>>>Airbus Group
> >> >>>>
> >> >>>> Standard GBP denominated shares
> >>
> >> etc etc
> >>
> >> At this point everything except “Airbus Group” was denominated in GBPs,
> >> Airbus Group was denominated in Euros.
> >>
> >> I noticed the problem when I realised that value of the Airbus Group
> >> shares (in the column headed "Present(GBP)"was given as £3989 but the
> >> real value should be 89(the number of shares)*€73.07(the value of each
> >> share)*0.87(the Euro to GBP exchange rate) ie £5658. (All the numbers
> >> are rounded.)
> >>
> >> Using the information I found during various web searches (insofar as I
> >> understood it all) it seemed the problem might be that the account “My
> >> Shares” was denominated in GBP but “Airbus Group” is denominated in
> >> Euros. I modified the account structure to the following form:
> >>
> >> Assets
> >>
> >> >My Assets
> >> >
> >> >>My Portfolio
> >> >>
> >> >>>My Cash
> >> >>>
> >> >>>>Cash Euros
> >> >>>>
> >> >>>>Cash Pounds
> >> >>>
> >> >>>My Eurex Shares
> >> >>>
> >> >>>>Airbus Group
> >> >>>
> >> >>>My LSE Shares
> >> >>>
> >> >>>> Standard GBP denominated shares
> >>
> >> etc etc
> >>
> >> With “Cash Euros”, “My Eurex Shares” and “Airbus Group” denominated in
> >> Euros, everything else is denominated in GBPs.
> >>
> >> I transferred some funds from “Cash Pounds” to “Cash Euros”; the
> >> original “Airbus Group” was deleted and a new account was reconstituted
> >> (there were very few entries) with the purchase made from “Cash Euros”.
> >>
> >> The result was that the GBP value of the Airbus shares was (still) shown
> >> as £3989.
> >>
> >> More web searches revealed nothing that I recognised as of relevance.
> >>
> >> The only thoughts that I have that may be significant are:
> >> (A) “Cash Euros” and “Airbus Group”, although denominated in Euros, are
> >> deep(ish) in a tree denominated in GBPs and, in particular, “Cash Euros”
> >> is a sub-account of “My Cash” which is denominated in GBPs. Does this
> >> somehow interfere with the correct accounting?
> >>
> >> (B) My broker pays Airbus dividends to me in GBPs and thus some of the
> >> transactions in the “Airbus Group” account reference the “Cash Pounds”
> >> account. If this is the problem: assuming the dividend I receive is
> >> £12.34 would it be possible to credit €12.34 to “Cash Euro” and transfer
> >> it to “Cash Pounds” at an exchange rate of 1:1 without screwing up
> >> something else?
> >>
> >> I suppose I could just live with the “error” but what is accounting
> >> without accuracy!
> >>
> >> A separate set of accounts for one share seems too much like overkill.
> >>
> >> Thanks in advance for any help or advice offered.
> >>
> >>
> >> Eric Coates
> >>
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--
Maf. King
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