Revalue Bal Sheet item?

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This topic require you to have fairly good accounting knowledge. You may want to seek your accountant or our support team for assistance.

 
Some accounts in the balance sheet in foreign currency need to be revalued at month end rate.
 
There will be 2 scenario whereby a foreign currency account may or may not be revalued.


Scenario 1:

Assuming you have a Plant and Machinery that was purchased in US 100,000 dollars, at the rate of 1.4000. Your reporting currency is SGD, so your purchase is in foreign currency.

You will create a new accounts in your chart of accounts as follows. Indicate your currency code as USD

 

Under the historical cost accounting principle, this accounts will be reported at costs of SGD140,000 and will not be revalued regardless of the fluctuation of US exchange rate when you do your monthly or yearly financial reporting. If the rate goes down to 1.2000, you do not value your fixed asset as SGD120,000.00.

 

Scenario 2:

Assuming you opened a US dollar bank account, you will create a new account in the chart of accounts as follows.

 

You will need to revalue the US dollar bank account when you do your monthly or yearly financial reporting.
 
A screen shot below shows USD bank a/c revalued on last day of April 20XX and May 20XX based on each month's exchange rate.

 

       


 

Related Topics

Chart of Accounts , tick the revalue Balance Sheet item, not to revalue capital accounts.

 

Preset Unrealised Gain/Loss in Exchange in Company Profile - Account Settings

 

Exchange Gain / Loss account in Chart of Accounts

 

FAQ Can I revalue only at the end of the year? Yes

 

Revalue GL A/c

 

Inactive A/c

 

 

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http://realtimme.cloudapp.net/basic/index.html?revalue_bal_sheet_item.htm