Foreign currency revaluation
Requirement
A currency revaluation is required in the local reporting currency of open positions in foreign currencies, using an exchange rate at the period closing date.
In New Zealand, these standards are used for reporting:
- Publicly accountable enterprises must follow the Full IFRS standards.
- Private enterprises must follow the same XRB reporting framework as in Australia, which is also known as “NZ IFRS RDR”.
M3 solution
Unrealized gains and losses related to currency exchange rates and due to open currency invoices in the accounts receivable ledger and the accounts payable ledger can be recognized at period end for these balances:- Accounts receivable
- Accounts payable
- Currency bank balances
Currency bank balances and investments in foreign currencies can also be revalued.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| CRS056 | Exchange Rate Type. Open | |
| CRS059 | Exchange Rate Type. Open per Currency | |
| CRS630 | Accounting Identity. Open | Select the Rev account check box for accounts that are to be revalued. |
| CRS395 | Accounting Rule. Set | Configure accounting rules for events GL20, GL21, and GL22. |
| CRS405 | FAM Function. Open | Configure function GL20. |
| GLS160 | Unrealized Exchange Rate Variance. Update |
Select a revaluation account:
|