Is it possible to add the possibility in the “Chart of Accounts” settings to edit the name of Assets, Liabilities and Equity like all other voices in order to give the exact nomenclature given by the local legislator?
Can’t you achieve that via translations?
Dear @novica,
I doesn’t work. First, because it will oblige everyone to have the same nomenclature (we are a firm controlled by a financial authority and there are firms controlled by diffent authorities in the same state which have different layouts/nomenclature). Second, because we actually use the english interface for all different veicles which are from different nations.
Right. I was not aware that different authorities in the same state would have different nomenclature.
And also… since you cannot set alphanumeric accounts code into the chart of accounts but only numbers I put those in the description of the account…
I would also add the possibility to rename “Uncategorized” since I use them as Memorandum Accounts (ie suspense accounts out of the Balance Sheet). To summarize, it would be great to have the possibility to set name of 1) Assets, 2) Liabilities, 3) Equity and 4) Uncategorized
Removed
Apologies. I didn’t mean to be offensive and take back my comment.
My understanding of accounts is based on an Anglo-saxon viewpoint where Assets=Liabilities + Equity
I was confusing your terminology with that used by some companies to move liabilities off their Balance Sheet which presents a distorted view of the worth.
Fine. Just a missunderstanding. They are used, for example, to keep trace of bonds or derivates inside the software. This amounts don’t have an impact on the results of the BS.
Please, keep in mind that a Memorandum Account should always balance internally at zero.
Well this is not only Anglo Saxon, A=L+E is the accounting Equation globally. But You may be familiar with IFRSs and reporting of Other Comprehensive Income.
After reading @Davide request I went to try and see if expense account left uncategorized will effect net profit or not. So I created an uncategorized expense account (named it Fixed asset revaluation gains and Losses) and debited an amount to it and credited another account under equity to try and see if the report will match IFRS reporting where net profit excludes component of other comprehensive income. Component of other comprehensive income and it total is shown below the net profit line. These Other comprehensive income items end up in an associated equity account (Under other component of Equity) at the end of the reporting period instead of moving into the retained earnings account. I will end the IFRS and GAAP complications here.
All I wanted to say is that @Davide's request could be developed to make Manager.io compliant with International Financial Reporting Standards and GAAP When it comes to reporting of Other Comprehensive Income items. (would be a plus because not many apps have that capability yet)
Currently The user will have to recognize these gains and losses in some equity account and present such incomes and losses on it final Profit or loss Statement under Other Comprehensive Income.
well… most likely useful for risk evaluation,useful for investor or financial institution, since it is unrealized gain or loss I doubt any small medium enterprise(sme) would want it to be taxed for it. make it optional.
In Alternative Investment Funds you have to do a valuation every six month in order to have the value of the assets to put in the BS. In the P&L you will have consequently an unrealised gain or loss.
Agreed, especially when we have to deal sale of land or buildings. Estate agents,broker and what not. For me I’m seeing this standard for international, If Lubos planning to implement it, I hope it there is an option for us to choose the current standard, that allow us to transit in due process. Currently, in Malaysia yet made the standard mandatory to apply it on small scale private corporation.