diff --git a/Ledger/Dates.hs b/Ledger/Dates.hs
index e5674a979..6d7910c4b 100644
--- a/Ledger/Dates.hs
+++ b/Ledger/Dates.hs
@@ -47,9 +47,6 @@ getCurrentDay = do
 elapsedSeconds :: Fractional a => UTCTime -> UTCTime -> a
 elapsedSeconds t1 t2 = realToFrac $ diffUTCTime t1 t2
 
-dayToUTC :: Day -> UTCTime
-dayToUTC d = localTimeToUTC utc (LocalTime d midnight)
-
 -- | Split a DateSpan into one or more consecutive spans at the specified interval.
 splitSpan :: Interval -> DateSpan -> [DateSpan]
 splitSpan i (DateSpan Nothing Nothing) = [DateSpan Nothing Nothing]
@@ -192,14 +189,14 @@ firstJust ms = case dropWhile (==Nothing) ms of
     [] -> Nothing
     (md:_) -> md
 
-parsedatetimeM :: String -> Maybe UTCTime
+parsedatetimeM :: String -> Maybe LocalTime
 parsedatetimeM s = firstJust [
     parseTime defaultTimeLocale "%Y/%m/%d %H:%M:%S" s,
     parseTime defaultTimeLocale "%Y-%m-%d %H:%M:%S" s
     ]
 
 -- | Parse a date-time string to a time type, or raise an error.
-parsedatetime :: String -> UTCTime
+parsedatetime :: String -> LocalTime
 parsedatetime s = fromMaybe (error $ "could not parse timestamp \"" ++ s ++ "\"")
                             (parsedatetimeM s)
 
diff --git a/Ledger/Parse.hs b/Ledger/Parse.hs
index 71729e977..56942b4ba 100644
--- a/Ledger/Parse.hs
+++ b/Ledger/Parse.hs
@@ -33,14 +33,13 @@ import System.FilePath(takeDirectory,combine)
 
 -- | Some context kept during parsing.
 data LedgerFileCtx = Ctx {
-      ctxTimeZone :: !TimeZone         -- ^ the user's timezone
-    , ctxYear     :: !(Maybe Integer)  -- ^ the default year most recently specified with Y
+      ctxYear     :: !(Maybe Integer)  -- ^ the default year most recently specified with Y
     , ctxCommod   :: !(Maybe String)   -- ^ I don't know
     , ctxAccount  :: ![String]         -- ^ the current stack of "container" accounts specified by !account
     } deriving (Read, Show)
 
 emptyCtx :: LedgerFileCtx
-emptyCtx = Ctx { ctxTimeZone=utc, ctxYear=Nothing, ctxCommod=Nothing, ctxAccount=[] }
+emptyCtx = Ctx { ctxYear = Nothing, ctxCommod = Nothing, ctxAccount = [] }
 
 -- containing accounts "nest" hierarchically
 
@@ -64,25 +63,23 @@ setYear y = updateState (\ctx -> ctx{ctxYear=Just y})
 getYear :: GenParser tok LedgerFileCtx (Maybe Integer)
 getYear = liftM ctxYear getState
 
-setTimeZone :: TimeZone -> GenParser tok LedgerFileCtx ()
-setTimeZone tz = updateState (\ctx -> ctx{ctxTimeZone=tz})
-
-getCtxTimeZone :: GenParser tok LedgerFileCtx TimeZone
-getCtxTimeZone = liftM ctxTimeZone getState
-
--- let's get to it
-
-parseLedgerFile :: FilePath -> ErrorT String IO RawLedger
-parseLedgerFile "-" = liftIO (hGetContents stdin) >>= parseLedger "-"
-parseLedgerFile f   = liftIO (readFile f)         >>= parseLedger f
-
 printParseError :: (Show a) => a -> IO ()
 printParseError e = do putStr "ledger parse error at "; print e
 
-parseLedger :: FilePath -> String -> ErrorT String IO RawLedger
-parseLedger inname intxt = case runParser ledgerFile emptyCtx inname intxt of
-                             Right m  -> liftM rawLedgerConvertTimeLog $ m `ap` (return rawLedgerEmpty)
-                             Left err -> throwError $ show err
+-- let's get to it
+
+parseLedgerFile :: LocalTime -> FilePath -> ErrorT String IO RawLedger
+parseLedgerFile t "-" = liftIO (hGetContents stdin) >>= parseLedger t "-"
+parseLedgerFile t f   = liftIO (readFile f)         >>= parseLedger t f
+
+-- | Parses the contents of a ledger file, or gives an error.  Requires
+-- the current (local) time to calculate any unfinished timelog sessions,
+-- we pass it in for repeatability.
+parseLedger :: LocalTime -> FilePath -> String -> ErrorT String IO RawLedger
+parseLedger reftime inname intxt = do
+  case runParser ledgerFile emptyCtx inname intxt of
+    Right m  -> liftM (rawLedgerConvertTimeLog reftime) $ m `ap` (return rawLedgerEmpty)
+    Left err -> throwError $ show err
 
 -- As all ledger line types can be distinguished by the first
 -- character, excepting transactions versus empty (blank or
@@ -337,7 +334,7 @@ ledgerpartialdate = do
   when (y==Nothing) $ error "partial date found, but no default year specified"
   return $ fromGregorian (fromJust y) (read m) (read d)
 
-ledgerdatetime :: GenParser Char LedgerFileCtx UTCTime
+ledgerdatetime :: GenParser Char LedgerFileCtx LocalTime
 ledgerdatetime = do 
   day <- ledgerdate
   h <- many1 digit
@@ -348,8 +345,7 @@ ledgerdatetime = do
       many1 digit
   many spacenonewline
   let tod = TimeOfDay (read h) (read m) (maybe 0 (fromIntegral.read) s)
-  tz <- getCtxTimeZone
-  return $ localTimeToUTC tz (LocalTime day tod)
+  return $ LocalTime day tod
 
 ledgerstatus :: GenParser Char st Bool
 ledgerstatus = try (do { char '*'; many1 spacenonewline; return True } ) <|> return False
diff --git a/Ledger/RawLedger.hs b/Ledger/RawLedger.hs
index 9da8610c8..1883b2297 100644
--- a/Ledger/RawLedger.hs
+++ b/Ledger/RawLedger.hs
@@ -147,9 +147,10 @@ rawLedgerCommodities = map commodity . concatMap amounts . rawLedgerAmounts
 rawLedgerPrecisions :: RawLedger -> [Int]
 rawLedgerPrecisions = map precision . rawLedgerCommodities
 
-rawLedgerConvertTimeLog :: RawLedger -> RawLedger
-rawLedgerConvertTimeLog l0 = l0 { entries = convertedTimeLog ++ entries l0
-                                , open_timelog_entries = []
-                                }
-    where convertedTimeLog = entriesFromTimeLogEntries $ open_timelog_entries l0
+-- | Close any open timelog sessions using the provided current time.
+rawLedgerConvertTimeLog :: LocalTime -> RawLedger -> RawLedger
+rawLedgerConvertTimeLog t l0 = l0 { entries = convertedTimeLog ++ entries l0
+                                  , open_timelog_entries = []
+                                  }
+    where convertedTimeLog = entriesFromTimeLogEntries t $ open_timelog_entries l0
 
diff --git a/Ledger/TimeLog.hs b/Ledger/TimeLog.hs
index 94e787749..48b23d91e 100644
--- a/Ledger/TimeLog.hs
+++ b/Ledger/TimeLog.hs
@@ -21,43 +21,41 @@ instance Show TimeLogEntry where
 instance Show TimeLog where
     show tl = printf "TimeLog with %d entries" $ length $ timelog_entries tl
 
--- | Convert time log entries to ledger entries.
-entriesFromTimeLogEntries :: [TimeLogEntry] -> [Entry]
-entriesFromTimeLogEntries [] = []
-entriesFromTimeLogEntries [i] = entriesFromTimeLogEntries [i, clockoutFor i]
-entriesFromTimeLogEntries (i:o:rest) = [entryFromTimeLogInOut i o] ++ entriesFromTimeLogEntries rest
-
--- | When there is a trailing clockin entry, provide the missing clockout.
--- An entry for now is what we want but this requires IO so for now use
--- the clockin time, ie don't count the current clocked-in period.
-clockoutFor :: TimeLogEntry -> TimeLogEntry
-clockoutFor (TimeLogEntry _ t _) = TimeLogEntry 'o' t ""
+-- | Convert time log entries to ledger entries. When there is no clockout,
+-- add one with the provided current time.
+entriesFromTimeLogEntries :: LocalTime -> [TimeLogEntry] -> [Entry]
+entriesFromTimeLogEntries _ [] = []
+entriesFromTimeLogEntries t [i] = [entryFromTimeLogInOut i (TimeLogEntry 'o' t "")]
+entriesFromTimeLogEntries t (i:o:rest) = [entryFromTimeLogInOut i o] ++ entriesFromTimeLogEntries t rest
 
 -- | Convert a timelog clockin and clockout entry to an equivalent ledger
 -- entry, representing the time expenditure. Note this entry is  not balanced,
 -- since we omit the \"assets:time\" transaction for simpler output.
 entryFromTimeLogInOut :: TimeLogEntry -> TimeLogEntry -> Entry
 entryFromTimeLogInOut i o
-    | outtime >= intime = e
+    | otime >= itime = e
     | otherwise = 
         error $ "clock-out time less than clock-in time in:\n" ++ showEntry e
     where
       e = Entry {
-            edate         = outdate, -- like ledger
+            edate         = odate, -- like ledger
             estatus       = True,
             ecode         = "",
-            edescription  = showtime intime ++ " - " ++ showtime outtime,
+            edescription  = showtime itod ++ "-" ++ showtime otod,
             ecomment      = "",
             etransactions = txns,
             epreceding_comment_lines=""
           }
-      showtime = show . timeToTimeOfDay . utctDayTime
+      showtime = take 5 . show
       acctname = tlcomment i
-      indate   = utctDay intime
-      outdate  = utctDay outtime
-      intime   = tldatetime i
-      outtime  = tldatetime o
-      amount   = Mixed [hours $ elapsedSeconds outtime intime / 3600]
+      itime    = tldatetime i
+      otime    = tldatetime o
+      itod     = localTimeOfDay itime
+      otod     = localTimeOfDay otime
+      idate    = localDay itime
+      odate    = localDay otime
+      hrs      = elapsedSeconds (toutc otime) (toutc itime) / 3600 where toutc = localTimeToUTC utc
+      amount   = Mixed [hours hrs]
       txns     = [RawTransaction acctname amount "" RegularTransaction
                  --,RawTransaction "assets:time" (-amount) "" RegularTransaction
                  ]
diff --git a/Ledger/Types.hs b/Ledger/Types.hs
index f0a326070..e82d56e2e 100644
--- a/Ledger/Types.hs
+++ b/Ledger/Types.hs
@@ -91,7 +91,7 @@ data RawLedger = RawLedger {
 
 data TimeLogEntry = TimeLogEntry {
       tlcode :: Char,
-      tldatetime :: UTCTime,
+      tldatetime :: LocalTime,
       tlcomment :: String
     } deriving (Eq,Ord)
 
diff --git a/Utils.hs b/Utils.hs
index 011c182bd..45df7c092 100644
--- a/Utils.hs
+++ b/Utils.hs
@@ -17,22 +17,26 @@ import Ledger
 
 -- | Convert a RawLedger to a canonicalised, cached and filtered Ledger
 -- based on the command-line options/arguments and the current date/time.
-prepareLedger ::  [Opt] -> [String] -> UTCTime -> String -> RawLedger -> Ledger
+prepareLedger ::  [Opt] -> [String] -> LocalTime -> String -> RawLedger -> Ledger
 prepareLedger opts args reftime rawtext rl = l{rawledgertext=rawtext}
     where
       l = cacheLedger apats $ filterRawLedger span dpats c r $ canonicaliseAmounts cb rl
       (apats,dpats) = parseAccountDescriptionArgs [] args
-      span = dateSpanFromOpts (utctDay reftime) opts
+      span = dateSpanFromOpts (localDay reftime) opts
       c = Cleared `elem` opts
       r = Real `elem` opts
       cb = CostBasis `elem` opts
 
 -- | Get a RawLedger from the given string, or raise an error.
+-- This uses the current local time as the reference time (for closing
+-- open timelog entries).
 rawledgerfromstring :: String -> IO RawLedger
-rawledgerfromstring = liftM (either error id) . runErrorT . parseLedger "(string)"
+rawledgerfromstring s = do
+  t <- getCurrentLocalTime
+  liftM (either error id) $ runErrorT $ parseLedger t "(string)" s
 
 -- | Get a Ledger from the given string and options, or raise an error.
-ledgerfromstringwithopts :: [Opt] -> [String] -> UTCTime -> String -> IO Ledger
+ledgerfromstringwithopts :: [Opt] -> [String] -> LocalTime -> String -> IO Ledger
 ledgerfromstringwithopts opts args reftime s =
     liftM (prepareLedger opts args reftime s) $ rawledgerfromstring s
 
@@ -41,7 +45,7 @@ ledgerfromfilewithopts :: [Opt] -> [String] -> FilePath -> IO Ledger
 ledgerfromfilewithopts opts args f = do
   s <- readFile f 
   rl <- rawledgerfromstring s
-  reftime <- getCurrentTime
+  reftime <- getCurrentLocalTime
   return $ prepareLedger opts args reftime s rl
            
 -- | Get a Ledger from your default ledger file, or raise an error.
diff --git a/hledger.hs b/hledger.hs
index d6a51fb9d..60fcae7d4 100644
--- a/hledger.hs
+++ b/hledger.hs
@@ -50,6 +50,7 @@ import Version (versionmsg)
 import Ledger
 import Utils
 import Options
+import Tests
 import BalanceCommand
 import PrintCommand
 import RegisterCommand
@@ -62,7 +63,6 @@ import qualified ANSICommand
 #ifdef HAPPS
 import qualified WebCommand
 #endif
-import Tests
 
 
 main :: IO ()
@@ -97,6 +97,6 @@ parseLedgerAndDo opts args cmd = do
   -- and, doesn't work with stdin. kludge it, stdin won't work with ui command
   let f' = if f == "-" then "/dev/null" else f
   rawtext <- readFile f'
-  reftime <- getCurrentTime
-  let runcmd = cmd opts args . prepareLedger opts args reftime rawtext
-  return f >>= runErrorT . parseLedgerFile >>= either (hPutStrLn stderr) runcmd
+  t <- getCurrentLocalTime
+  let runcmd = cmd opts args . prepareLedger opts args t rawtext
+  return f >>= runErrorT . parseLedgerFile t >>= either (hPutStrLn stderr) runcmd