Gain/Loss figure in Capital Gains Report changes continuously

Legacy KB ID: 3779

Question

Why does the Gain/Loss figure on the Capital Gains Report change continuously?

Answer

You will encounter this problem when you buy and sell shares priced in a foreign currency. 

Reckon Accounts can only use the current Exchange Rate for all transactions and therefore cannot correctly identify changes in value due to fluctuations in the exchange rate.  When the exchange rate is changed the gain/loss is recalculated. 

 

Workaround

There are two ways you can get a true Capital Gains figure:

  1. Export data to excel and recalculate in excel
  2. Work from a modified report based on your bank register

Both options will take a little time to complete. 

 

Export to Excel

  1. Select Reports, then Investing and choose Capital Gains
  2. Adjust the date range then click on Export Data and select Export to Excel compatible format

3.    Open the file and calculate the true Australian Dollar value of the foreign currency share transactions:

a.    Enter in the current Exchange Rate(s) used by Quicken

b.    Enter the actual exchange rates for each buy and sell transaction

c.    Calculate the Australian Dollar value of each buy and sell transaction at their relevant exchange rates

d.    Calculate the Gain or Loss on each transaction

    1. Total the Gain/Loss column to obtain your Capital Gain/Loss for the period.

 

Cash Flow by Tag report in Reckon Accounts

The correct Australian Dollar amounts are kept in your bank register.  Adding a tag and then viewing a Cash Flow by Tag report will allow you to get a true Gains/Loss report:

1.    Create a Tag for your foreign currency share transactions

a.    On the top menu line select Tools and then Tag List

    1. Click on the New button, enter a name (eg: Intl Shares) and click OK  and then Done to create the Tag
  2. Buy and sell shares by a transfer from your bank account.
  3. After buying or selling a share, add the Tag to the transaction in the bank register
  4. Open the Cash Flow by Tag report from Reports > Banking
  5. Select the appropriate Date range
  6. Click on the Customise icon in the top right-hand corner
  7. Click on Accounts tab and then All Accounts under Select Account Group
  8. Untick your Investment Accounts and ensure all bank accounts used for the sale and purchase of shares are selected
  9. Click on the Advanced tab and in the Transfers box, change it to Include All
  10. Click OK to save settings and return to your report.
  11. Scroll to the bottom of the report.  The figure in your Tag column on the Overall Total line will give you the total value of your share holdings plus realised gains and losses.  Write down this total.
  12. Memorise this report by clicking on the Save Report icon at the top of the screen
  13. Open a Portfolio Value Report from Reports > Investing and extract the cost value of shares currently held
  14. Deduct this amount from the Overall Total for your Tag.  This is your realised Capital Gains/Loss. 

 

Warning

Reckon Accounts does not provide a comprehensive treatment of Capital Gains.  Capital Gains is a complex area and susceptible to change at short notice.  Users should consult their financial adviser for full guidance on all Capital Gains aspects. 

Need more help?

Ask the Reckon Community at: https://community.reckon.com/

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

When I enter a Transfer between two accounts or an asset purchase, the tax does not appear on the BAS or on the Tax Reports

Large numbers for share prices after upgrading to RAP2017

Related Articles

Realised Capital gains not reporting correctly
Unrealized (Exchange Rate) Gain & Loss Report does not refresh in Reckon Accounts 2023
In my Cash Flow report, why is the figure for Customer Invoices a gross figure?
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)