Currency Revaluation – An overview      

Introduction

Accounting principles demand that foreign currency balances be restated on year closure/period closure using exchange rates prevalent at that time. Even in other circumstances, when there is a change in exchange rates, transactions represented by foreign currency balances will have to be revalued using the changed rates.

This component enables revaluing the foreign currency transaction and balances of the company.

Feature Highlights

• Updating the value of all-foreign currency current liabilities, current assets and capital accounts. Calculating any gain or loss due to exchange rate fluctuation in the period between the actual transactions and the annual financial reporting.

• Provision to select the foreign currencies whose exchange rates are to be reevaluated. Also gives a provision to select the accounts, for the foreign currencies to be revalued.

• Provision to simulate the effect of currency revaluation on the account balances without actually modifying them. Also possible to carryout revaluation for the earliest open financial period or up to the latest open financial period.

• Facility to transfer the loss or gain incurred on currency revaluation, transferred to the respective accounts through a reversal journal voucher. It is also possible to view the unrevalued accounts. The FB can be closed only if all the accounts are revalued.

List of Activities