[GNC] Accounting Equation Mismatch for Foreign Currency/Security

[Gao Bite]

Gnucash Developers and Maintainers:

Hello! The reporting needs of my book would be the accounting equation: 
"Assets = Liabilities + Equity" would be balanced after I conducting 
carrying forward to my account book. Therefore, the data in the account 
book file would be ready for external data analysis software.

I sincely thank you for sparing your precious time solving this problem.

Yours,

      Bite Gao
Aug 26th, 2022

On 2022/8/26 16:20, David Carlson wrote:
> When you change the exchange rate for a commodity that is not the base 
> currency you are creating an unrealized gain or loss.  GnuCash is not 
> configured to handle these unrealized gains or losses without manual 
> assistance.  How you accomplish that depends on your reporting needs.
>
> On Thu, Aug 25, 2022 at 11:32 PM Gao Bite <redfrog2000 at outlook.com> wrote:
>
>     Gnucash Developers and Maintainers:
>
>     Hello! When I'm processing transactions about foreign currency/
>     securities that are not the base currency, I have found a
>     non-negligible
>     issue:  the accounting equation becomes unequal when I change the
>     price
>     in the built-in editor. Here are the details of the problem:
>
>     I live in China and use CNY as the base currency, and I hold some
>     of my
>     assets in USD. Suppose that the exchange rate of USD/CNY is 6.5:1 on
>     Sept 1st, and it has changed to 6.75:1 on Sept 30th. I hold $500
>     in USD
>     and record it in GnuCash. However, with the new price entered into
>     the
>     built-in editor, the total amount of assets would be greater than the
>     sum of liabilities and equity by ￥175 in CNY. Also, I cannot make a
>     single-split transaction to record the price fluctuation since
>     there is
>     no debit account to match that credit account.
>
>     One supposed solution you gave me would be using the trading account.
>     However, since trading account could not sum up the exchange profit &
>     loss in a single time, it would be useless to me.
>
>     I sincely thank you for sparing your precious time to this problem.
>
>     Yours,
>
>     Bite Gao
>
>     Aug 26th, 2022
>
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> -- 
> David Carlson