Revaluation of bank balances - journal entries

UK Discussion in 'Technical Queries' started by crisdall, Jul 16, 2017.

?

Revaluation of bank balances - journal entries

  1. Revaluation

    0 vote(s)
    0.0%
  2. Bank balances

    0 vote(s)
    0.0%
  1. crisdall

    crisdall

    Joined:
    May 25, 2015
    Messages:
    8
    Likes Received:
    0
    Hi, we have several bank accounts in different currencies. The reporting currency is USD so the accounting software take the exchange rate as per transaction date. However, at the end of the period the balance of the bank account may require to be revaluated due to the variances of the exchange rates. Which are the journal entries to apply on the revaluation process?
    Thank you
     
    crisdall, Jul 16, 2017
    #1
    1. Advertisements

  2. crisdall

    Steve-LevelUp

    Joined:
    Jul 18, 2016
    Messages:
    90
    Likes Received:
    6
    The entry depends on how your system manages exchange rates. Many systems have both a source balance and a functional balance. The entry needs to only impact the functional balance (this is the converted balance from the source balance to the local balance) and exchange gain/loss.
     
    Steve-LevelUp, Jul 17, 2017
    #2
    1. Advertisements

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.
Similar Threads
  1. Lee
    Replies:
    3
    Views:
    702
    Edward Cowling
    Jul 22, 2004
  2. Vass

    Revaluation and Deferred Tax

    Vass, Nov 17, 2005, in forum: UK Accountancy
    Replies:
    4
    Views:
    2,305
    Troy Steadman
    Nov 22, 2005
  3. me
    Replies:
    4
    Views:
    2,339
  4. Slap
    Replies:
    0
    Views:
    1,206
  5. wldonnell
    Replies:
    0
    Views:
    610
    wldonnell
    Aug 12, 2003
  6. wldonnell
    Replies:
    2
    Views:
    578
    wldonnell
    Aug 13, 2003
  7. Steve
    Replies:
    1
    Views:
    613
    Dick Watson
    May 9, 2008
  8. TW

    RBS Revaluation, How to enter?

    TW, May 8, 2007, in forum: Microsoft Money UK
    Replies:
    2
    Views:
    958
Loading...