Cash Account foreign currency valuation

[EveSat]

Hi,

We would like to value our year end foreign currency cash balance to the exchange rate at the end of the year ie. Sept 09 to recognize foreign exchange gains/losses. We need to reflect that the home currency functional balance would equal to the foreign currency's Sept30th exchange rate. Would a journal entry be okay? if so, which currency should be used in the JE?

Thanks for your help.

 

[ettienne]

You can do a revaluation entry, the source amount would be zero and the functional amount would be the gain/loss.

 

[EveSat]

sorry, but from where is this done? in bank transactions or a JE?

 

[ettienne]

GL

 

[EveSat]

Thanks a lot, this really helps.