Revaluation of bank balances - journal entries

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

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Revaluation of bank balances - journal entries

  1. Revaluation

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  2. Bank balances

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  1. crisdall

    crisdall

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    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
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  2. crisdall

    Steve-LevelUp VIP Member

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    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
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