Re: multi currency processing

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Posted by Mark on January 30, 2007 at 10:54:52:

In Reply to: Re: multi currency processing posted by martin F on January 30, 2007 at 01:50:10:

: Thanks Mark - but this is only a partial answer. Is there some way of capturing the Canadian dollar equivalent of a foreign investment - namely the purchase value expressed in CAD which is then stored on file, in Fund Manager. Lets say the next day I sell the investment for the same amount it cost me in local currency terms - however, lets say that the CAD has declined by 5%. Then from a Canadian tax perspective I have made 5% and it would be useful if Fund Manager would then be able to calculate a capital gain expressed in CAD. To do this, it would need a way of being able to store and the CAD equivalent at the time of purchase and the time of sale. The tutorial you showed me seems to generate a snapshot/report, but doesnt appear to store the CAD equivalent.

: - Martin

Hi Martin,

When you're using an exchange rate investment to convert between currencies, you have the ability to have a unique exchange rate on each day. The exchange rate is the closing price of the assigned exchange rate investment. When you create a capital gains report, you can have the "View / Exchange Rate Adjusted" option either on or off, so the amounts will be displayed in either the default currency, or each investment's native currency. Using your example above, if this option is off, the amounts would be reported in the native currency, so you would show a gain of $0 CAD. If this option were on, you would show a gain of some $ in USD (equal to the 5% you mentioned).

You cannot assign an exchange rate to each transaction, but you can assign 1 unique exchange rate to each date. This means that as long as you don't have more than 1 transaction/day at different exchange rates, you can accomplish what you're looking for.

Thanks,
Mark
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Fund Manager - Portfolio Management Software

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