FIFO Method

The system calculates the exchange rate differences on the assumption that the available financial means purchased first are disposed at the beginning.

According to Polish tax law, historical currency rates must be used to value the outcome transaction. The rates are determined based on the FIFO algorithm.

Currency differences are calculated as the difference between transaction exchange rate and the exchange rate from documents are retrieved according to the FIFO algorithm.

The results are posted to the currency difference FIFO ledger accounts. A detailed report also represents the documents that are used to calculate the currency differences for FIFO method.