[GNC] Calculation of Unrealized Losses

[Bill Dika]

Thank you John.

I will look into it.

Bill Dika

On Thu, May 5, 2022 at 4:48 PM John Ralls <jralls at ceridwen.us> wrote:

> David is referring to https://bugs.gnucash.org/show_bug.cgi?id=797796,
> which is probably the issue you're seeing: You have some three-commodity
> transactions involving USD, CAD, and a Vanguard fund and the average-cost
> algorithm used in the trial balance report doesn't work well in that case.
>
> Regards,
> John Ralls
>
>
>
>
> > On May 2, 2022, at 7:54 PM, David Carlson <david.carlson.417 at gmail.com>
> wrote:
> >
> > Bill,
> >
> > If I recall correctly, one or more of the methods GnuCash uses to
> calculate
> > exchange rates for reports is technically not correctly defined , so it
> > obscures the  fact that it is not calculating the expected value.  That
> is
> > leading to strange results when, for example, one attempts to do a trial
> > balance.   I know very little about accounting so I cannot tell you
> details
> > about that.
> >
> > Some of the developers can help with some of those issues.  Hopefully
> they
> > can at least tell you which calculation methods to avoid when you want
> > accurate results .
> >
> > On Mon, May 2, 2022, 9:27 PM Bill Dika <billdika at gmail.com> wrote:
> >
> >> Can anyone help me with this?
> >>
> >> Do I have to supply more/different information?
> >>
> >> I have been using gnucash personally for a couple of years now and would
> >> like to develop more confidence in the program.
> >>
> >> Thank you in advance for your help.
> >>
> >> Bill Dika
> >>
> >> On Wed, Apr 27, 2022 at 1:42 PM Bill Dika <billdika at gmail.com> wrote:
> >>
> >>> My default currency is Canadian dollars. I have some US dollar
> >>> accounts in my balance sheet.
> >>>
> >>> I have an unrealized loss in the equity section of my balance sheet at
> >>> July 31 2021 of $12.68 and cannot figure out how it was calculated. I
> >>> also have US dollar accounts expressed in Canadian dollars that I am
> >>> unable to determine how the translation from US dollars to Canadian
> >>> dollars occurs.
> >>>
> >>> For example I have a US dollar account of $353.75 for Tesla (see
> >>> us-dollar-accts-in-us-dollars-july-31-2021.png) that shows as $456.22
> >>> in Canadian dollars at July 31 2021 (see
> >>> us-dollar-accts-july-31-2021.png). This is an exchange rate of
> >>> 1.28966. I am unable to figure out how Gnucash arrives at that rate
> >>> (see us-dollar-rates-price-database.png). It is not the rate at July
> >>> 31 2021. It is not the average rate for all rates I have up to July 31
> >>> 2021 and it is not the average rate for all rates I have in the price
> >>> database.
> >>>
> >>> Also the $12.68 loss arises from only one change in the US dollar
> >>> accounts from June 30 2021 to July 31 2021. That is a $524.80 US
> >>> dollar addition to "Vanguard Intl Equity Total World Stock ETF" (see
> >>> change-in-us-dollar-acct-july-2021.png).
> >>>
> >>> Attached are images of the following:
> >>> equity-jun-30-2021.png = showing the equity section almost balanced
> >>> (.01 unrealized gain) (in Canadian dollars)
> >>> equity-july-31-2021.png = showing the $12.68 unrealized loss (in
> >>> Canadian dollars)
> >>> us-dollar-accts-in-us-dollars-jun-30-2021.png = balance sheet accounts
> >>> (in US dollars)
> >>> us-dollar-accts-jun-30-2021.png = balance sheet accounts (in Canadian
> >>> dollars)
> >>> us-dollar-accts-in-us-dollars-july-31-2021.png = balance sheet
> >>> accounts (in US dollars)
> >>> us-dollar-accts-july-31-2021.png = balance sheet accounts (in Canadian
> >>> dollars)
> >>> change-in-us-dollar-acct-july-2021.png = shows the only change in the
> >>> US dollar accounts ($524.80 USD) from June 30 to July 31 2021 (in US
> >>> dollars)
> >>> us-dollar-rates-price-database.png = all the US to Canadian exchange
> >>> rates in my database
> >>>
> >>> I am a Canadian CPA and feel quite confident about the accounting in
> >>> the gnucash file. I have reviewed the journal entries for the period
> >>> and they all balance. The only thing I can ascertain is that the
> >>> unrealized loss arises from the US dollar accounts but I cannot figure
> >>> out how gnucash is calculating it nor can I figure out how gnucash
> >>> translates US dollars to Canadian dollars for those accounts.
> >>>
> >>> I have searched the list but cannot find anything that helps me in my
> >>> calculation.
> >>>
> >>> I am on Arch linux using Gnucash 4.9.
> >>>
> >>> Any help would be much appreciated.
> >>>
> >>> Thank you.
> >>>
> >>> Bill Dika
> >>>
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