UK PPV FX Help needed

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Hi. We were trying to understand at my work all t account entries related attached file.

Norway entity buys Iodine material for $61USD in Period 1. Functional currency for Norway is NOK. Inventory will be debited at opfx rate while AP credited at MOR. This generates PPV FX which we fifo'd out.

In period 2 we sell our inventory. NOK entries will stay the same but USD translation will be done using MOR 2 rates. In row79 C, we believe there should be an entry to balance all out. Please follow through the example i shared and advise what we doing wrong, ,main issue highlighted in red.
 

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DrStrangeLove

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You're not doing anything wrong. Foreign currency translations/revaluations of rollforwards rarely roll perfectly unless the currencies involved are pegged one to the other. Since the NOK/USD exchange rate floats, rollforwards translated between them will almost never roll without entries for translation/revaluation adjustments or back-calculating the translated/revalued rollforward's balancing item (in this case, setting COGS as whatever makes the inventory rollforward roll rather than as a translated/revalued income statement item).
 

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