[GNC] Exchange rate of income statement report

[will at theprescotts.com]

I am not sure this is responsive to the original question.

I keep records for two different currencies in Gnucash. Every account is set to one or the other of them. And every transaction is entered in the currency of the account. The only time there is ever an issue of converting between currencies is when I move money from a bank account in one country/currency to another bank account in a different country/currency. When I do this, I enter the exact amounts in the respective currencies. So it shows with one value in one account and the other value in the other. The conversion rate shows up in the Price Database on one side or the other depending on which account I used to enter the transaction. But I rarely look at the Price Database. And I never have occasion to do anything that requires converting between currencies except those entries where money is moved from one to another.

Will

On 2020 Oct 16, at 10-16 15:16:46, Michael or Penny Novack <stepbystepfarm at comcast.net> wrote:

On 10/16/2020 7:49 AM, Gal wrote:
> Assume a user doesn't file any tax report, and is only interested in accurate
> expense and income reports for personal tracking.
> Moreover, accurate, means that when a transaction is translated to a
> different currency, it is always done so at the exchange rate of the
> transaction date.
> 
> Under these requirements, would you recommend entering transaction, under
> the expense and income accounts, in the main currency or in the original
> transaction currency?

Personally? In a single currency.

Here's why. The retention of information about "in which currency" is important mainly because you want to consider evaluation at some other dates. You might have funds retained in that currency, and no, especially in this case not what they were worth in terms of some other currency when deposited but more likely now.

Accounting is all about information. Maybe if you explained what information was being kept for it would make more sense retaining both in one set of books. Note that if there were some restrictions on conversion, accounts in separate countries subject to such restriction, I would probably suggest separate books.

Michael D Novack


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