Forex Accounting on Balance Sheet

[gsethi]

Please could I ask your help in the following regarding my end of year accounts.

This is the first year that I have moved from spread betting to trading on Metatrader 4 with Gallant FX as I want to show forex trading as part of my investment business. My auditor has asked me to convert the trades showing the volume traded as turnover in UK GBP£ r on my balance sheet?

Would I be correct in showing it in this way?
For example, if I buy
1 lot of EURCHF @ 1.00

and sell at 1.10 (price chosen to keep it simple)

can I show this as having had bought 100,000 CHF
and selling 110,000 CHF

which would show at end of year as a 10,000 CHF profit which I could convert into GBP£ (I am based in UK) to show my profit.

Would this be acceptable for showing on my balance sheet and reporting to HMRC at end of year?

 

[malaguti]

Please could I ask your help in the following regarding my end of year accounts.

This is the first year that I have moved from spread betting to trading on Metatrader 4 with Gallant FX as I want to show forex trading as part of my investment business. My auditor has asked me to convert the trades showing the volume traded as turnover in UK GBP£ r on my balance sheet?

Would I be correct in showing it in this way?
For example, if I buy
1 lot of EURCHF @ 1.00

and sell at 1.10 (price chosen to keep it simple)

can I show this as having had bought 100,000 CHF
and selling 110,000 CHF

which would show at end of year as a 10,000 CHF profit which I could convert into GBP£ (I am based in UK) to show my profit.

Would this be acceptable for showing on my balance sheet and reporting to HMRC at end of year?

http://www.trade2win.com/boards/tra...nting-vs-tax-software-trading-business-2.html

 

[gsethi]

Thank you Malaguti,

Sorry what I forgot to add in the above was that my auditors main requirement is teh turnover aspect of the transaction as I have standing costs of software (esignal and other providers) together with office costs but to date my trading has been quite small as have my gains and losses.
Therefore using my original example, would it be okay to report a turnover in my purchase ledger of CHF 100,000 and in my sales ledger of CHF 110,000? I would record the currency rates on the dates of opening and closing as well as end of year (31st March) for conversion to GBP£.

Do you show a turnover figure like this in your accounts?

 

[NVP]

be very careful here dude ........dont fool with the Taxman on such matters

get an accountant who is performing this task for similar businesses

N

 

[NVP]

read the other thread - this guy doesnt listen does he ? ..........lets not worry about profits tooo much then

N