I'm looking to use GnuCash for investment tracking and while I evaluate the software, I am specifically interested in how to get it to properly calculate the ACB of foreign investments in CAD.
For Canadian tax rules (as far as I understand them), reporting capital gains or losses on foreign stock (e.g. US) must take into account the exchange rates on the dates the transactions occurred.
For example, if I wanted to purchase US$100 in XYZ Corp, and the CAD/USD is 1.1, then my cost basis should be CA$110. Later on, XYZ Corp shares increase to $120, but the CAD/USD falls to 1.05, my proceeds from the sale are CA$126. Therefore, my capital gain is CA$16.
Is it possible to get GnuCash to record the exchange rates to be used for calculating cost basis and proceeds? It appears that the reports only use the most recent prevailing exchange rate.