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How do you translate foreign currency transactions at each subsequent balance sheet date?

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Question added by Deleted user
Date Posted: 2017/07/07
Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

The effects of changes on foreign currency rates are translated under IAS. 21,how to account fir foreign currency transactions and operations in financial statements,abd also how to translate financial statements into a presentation currency. -An entity is required to determine a functional currency for each of its operations if necessary based on the primary economic environment in which it operates and generally recirds fireign currency transactions using the spot conversion rate that functional currency on the date of the transaction

Muhammad Tahir Godil
by Muhammad Tahir Godil , Financial Planning and Analysis Manager , The Court Group Of Companies

According To IAS 21 Foreign Currency Transaction Needed To Be Translate At Balance Sheet Date.

For Example Foreign Currency Receivable's Should Be Translated At The Balance Sheet Date By Multiply Foreign Currency Into Local Rates. After That We Compare That Receivables In Our Book What we Have Recorded. Then Accordingly We Will Record Over / Under Adjustment of Receivables & Gains/Losses.

FATEH BOUCHENE
by FATEH BOUCHENE , institut d'emission , banque centrale d'algerie

The immediate conversion of transactions into euros To convert quotations to euros, day by day, companies have two solutions: Use the yard of the day of the operation; Use a fixed or average price. Each transaction is therefore systematically converted into euros and at the end of the year, the balance of the dollar account is converted into euros at the current rate. The difference results in the recognition of a gain (account 766xxx) or a loss of exchange (account 666xxx). Exemple le solde en comptabilité, à la clôture est de 10000€ ; le solde réel sur le relevé est de 15000$. Le 31 décembre 2016, un euro vaut 1.2098 dollars et un dollar vaut 0.8263€. On obtient donc selon la conversion choisie : 15000 / 1.2098 = 12398.74€ (ou 15000 * 0.8263)

Mohsin Raza Sangi
by Mohsin Raza Sangi , Financial Controller , Blends Trading LLC

On closing of each month, convert all the foreign currency balances at the balance sheet date at the market rate. any difference will be recognized in the profit in loss account.

AYYALA  RAJESH KUMAR
by AYYALA RAJESH KUMAR , GENERAL MANAGER - ACCOUNTS & FINANCE , CUE APPARELS PVT LTD

you can close forex profit or loss as per valuation of last day exchange rates, and take forward converted forex rates for next year opening

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

In accordance with International Accounting Standard (IAS) (21) Effects of Changes in Foreign Exchange Rates Exchange differences are recognized on the basis that exchange differences arising on the settlement of monetary items or on the reporting of monetary items of the entity at different rates of exchange than those previously recorded During the period or reported in previous financial statements, shall be recognized as income or expense in the period in which they arise.

 

Gains or losses arising from foreign exchange differences are included in the statement of profit and loss except for financial assets available for sale. Currency differences arising from valuation are recognized in the category of unrealized gains or losses on financial assets in other comprehensive income

 

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