[GNC] Should i care about Unrealized Losses/Gain in Balance Sheet ?

Stephen M. Butler kg7je at arrl.net
Wed Apr 8 23:02:11 EDT 2020


On 4/8/20 12:13 PM, Long wrote:
> Hello,
>
> I have posted a topic about this, but that topic have been spammed. So i
> created new one to resolve my question.
>
> First, i'm not an accounting, and trying to stay away accounting language,
> trying to make anything to easier to understand for me, and who have the
> same question like me. 
I urge you to learn at least the fundamentals about book keeping and
accounting. 
> OK, my question is :
> -----------
> I have 2 Bank accounts, one for my default currency, and other is USD in
> GnuCash. In my real life, i usually buy USD by my VND, Then, I will sell USD
> to get VND back. (included gold ... but i just want to talk about USD, it's
> the same thing to do in GnuCash).
> So, i setup the price database (GnuCash 3.9) for USD, i assume the rate is 1
> USD = 2 VND for first time i bought. So my accounts :
> -----------
> Assets: 40 VND
> -- VND Bank : 20 VND
> -- USD Bank  : 10 USD -- 20 VND
> Equity : 40 VND
> -----------
> Next month, The rate changed : 1USD = 3VND
> Assets : 50 VND
> -- VND Bank : 20 VND
> -- USD Bank : 10 USD -- 30 VND
> Equity : 40 VND
> -----------
> Ok, the problem here, My Balance Sheet report now show in the equity tab
> that had "Unrealized Gain" about 10 VND.
> I knew that it's mean the rate of the USD are increasing so my assets are
> increasing too. 
> But, It's also "Unrealized Gain" and not the "Realized Gain" in the report
> when i transferred that USD to VND Bank. (Which mean, when USD rate high, i
> sell it by transfer that money from USD Bank to VND Bank in GnuCash, of
> course in my real life i do the same thing).
> My accounts at that time:
> Assets: 50 VND
> -- VND Bank : 50 VND
> -- USD Bank : 0
> Equity : 40VND
> -----------
> 1
>  - So,i really don't need to care about that "Words" in the Balance Sheet
> Report ?
> 2
>  - If i need to care about it, What should i do to change it from
> "Unrealized" to "Realized" (Please give me example for this).

You yourself gave the best example -- when you sell it becomes "realized".

Unless your local taxing authority requires otherwise (and check with
your local accounting professional -- CPA), you can just ignore that it
happens.

> -----------
> P/s : I had read documents from GnuCash, and it's look like very hard to
> understand for me. And i don't turned on the "Trading account", look like it
> is the old way for solving this in the older version of GnuCash. i only
> created account with USD currency and setup the price database.
>
> Thank you so much. Please help me.
> Regards.

It may help to setup an empty data file and follow the examples in the
Concepts Guide.  It can be tough to follow in a foreign language.

--Steve


-- 
Stephen M Butler, PMP, PSM
Stephen.M.Butler51 at gmail.com
kg7je at arrl.net
253-350-0166
-------------------------------------------
GnuPG Fingerprint:  8A25 9726 D439 758D D846 E5D4 282A 5477 0385 81D8




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