[GNC] Exchange rate of income statement report

[Christopher Lam]

As I understand, for personal tax most would offer the original currency
income statements to the accountant; the latter would convert to local
currency using an exchange rate from legislated sources.

To achieve this using the formal reports you'd ensure there is price data
USD/ILS on the report date corresponding to the legislated exchange rate
rather than the daily rate. IMHO this is too complex; I'd rather the
reports use the original currency amounts instead.

On Thu, 15 Oct 2020, 8:22 pm Gal, <galbarm at gmail.com> wrote:

> Michael or Penny Novack wrote
> > Well, this was the P&L report, one of the uses being when filing out tax
> > forms (this is a case where the name usually used for the report depends
> > on the form of the entity for which the books being kept)
> >
> > So ........ what do the tax codes of the US and Israel have to say about
> > currency conversion dates? For example, suppose you had a dollar expense
> > that was deductible on Israeli taxes. As of what date must the
> > conversion to shekels be done. Now vice versa. How about if the two
> > jurisdictions don't  agree? For the more general situation, consider any
> > other pair of countries.
> >
> > Michael D Novack
>
> I don't keep track of expenses for tax reports.
> I do so purely for expense and income tracking.
> For several years now I've used YNAB4 and implemented SSAP20 method for
> tracking foreign currency accounts:
> https://www.mscs.dal.ca/~selinger/accounting/tutorial.html#3
>
> But now I'm making the transition to GnuCash and one of the reasons was to
> take advantage of the better multi currency support is has.
> So I'm mainly trying to figure out how to setup the accounts, and whether
> if
> having expense account per currency is the right way for me.
>
> The thing I had in mind, in addition to what I wrote before, is that it
> seems like a good practice to have a separation between the data and the
> translation+reports.
> The expense was done in USD? document it in USD, and the report system
> should deal with the translation for you.
> If a country has specific tax codes, but a common one, I expect that the
> report system will provide me with that option.
> Doing the translation during data entry means you stick with a single
> predetermined rule/tax code that cannot be changed without modifying all of
> the transactions.
>
>
>
>
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