diff --git a/ChangeLog b/ChangeLog
index b11d63bf32..87c5764c5c 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -13,6 +13,9 @@
 	  compatible with QSF: using false instead of FALSE in string
 	  output and using the QSF_XSD_TIME for the datestrings.
 	
+	* src/engine/Account.c:
+	  - updated implementation of qofAccountSetParent().
+
 2005-01-29  Derek Atkins  <derek@ihtfp.com>
 
 	David Montenegro's patch for bugs #95551, #124367.
diff --git a/src/engine/Account.c b/src/engine/Account.c
index 185f6fea25..b69ffc5f0e 100644
--- a/src/engine/Account.c
+++ b/src/engine/Account.c
@@ -1258,23 +1258,17 @@ xaccAccountSetDescription (Account *acc, const char *str)
 static void
 qofAccountSetParent (Account *acc, QofEntity *parent) 
 {
-	AccountGroup *ag;
-	if((!acc)||(!parent)) return;
-	if(acc->parent) return;
+	Account *parent_acc;
+	
+	if((!acc)||(!parent)) { return; }
+	parent_acc = (Account*)parent;
 	xaccAccountBeginEdit(acc);
-	g_message("qofAccountSetParent start");
-	ag = xaccAccountGetParent((Account*)parent);
-	acc->parent = ag;
-/* FIXME: acc->parent is type AccountGroup but AccountGroup is not a true QOF object 
-so can't set AccountGroup in the target book because the GUID of any new AccountGroups 
-is not found. Workaround uses Account as the reference type.
- */
-	if(!acc->parent) {
-		g_message("qofAccountSetParent failed.");
-	}
+	xaccAccountBeginEdit(parent_acc);
+	xaccAccountInsertSubAccount(parent_acc, acc);
+	mark_account (parent_acc);
 	mark_account (acc);
-	acc->inst.dirty = TRUE;
 	xaccAccountCommitEdit(acc);
+	xaccAccountCommitEdit(parent_acc);
 }
 
 void