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Foreign Exchange Rates

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Entry Format

When entering foreign exchange rates on the Unit Details screen, the format should be the amount 1 unit of Reporting Currency would equal in Local Currency or Reporting Currency/Local Currency. For example, if reporting is USD and 1 USD equals .60 of another currency, the rate would be 1.666667 (1/.6).

Note: You cannot enter a zero FX rate.

Types

•Weighted Average Rates: Blended foreign exchange rate for a period of time that is applied to Income Statement items.

•Spot Rates: Foreign Exchange rate on a specific date that is applied to Balance Sheet items.

Adjustments

Currency Translation Adjustment: The difference between Weighted Average rate and Spot rate, when Income Statement items have an impact on Balance Sheet items.