USA Posting Date vs Transaction Date for Currency Remeasurement


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Hello,

If we are posting a foreign supplier invoice, what currency rate should the system use? The rate at the time the transaction occurred ( Invoice date) or the rate at the time the invoice was posted in our accounting system?

Personally, I believe that if we receive an invoice 10 days after it was issued, our expenses and liabilities should be valued at the prevailing exchange rate on the posting date. That's what we would pay if we were to settle it immediately.

However, there is an argument that we should use the date on the invoice because if the invoice was received on the same date it was issued, but it took us 10 days to post it, our expenses should have been valued at the date of the invoice and any difference to the exchange rate on the posting date ( or the end of the month) should be FX Gain or loss.

I couldn't find anything official on the guidance for ASC 830.
 
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kirby

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Doing things your way makes sense. It is usually what is done for normal (non fx) invoices.
 

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