[GNC] Exchange rate of income statement report

[Christopher Lam]

Found it. Both methods are acceptable:
1) reach foreign currency converted to local according to Forex on date.
Transaction report will do this.
2) average rate is allowed under GAAP. Not doable easily unless price data
is carefully scrutinised.

https://www.accaglobal.com/us/en/technical-activities/technical-resources-search/2015/march/frs102-foreign-currency-translation.html


On Fri, 16 Oct 2020, 4:10 am Christopher Lam, <christopher.lck at gmail.com>
wrote:

> 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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>