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Dear Sir,
I would like to know.
Functional currency is USD.
Transfer USD1,000 from USD bank account to EUR bank account.
Based on the spot rate,USD 1,000 : EUR 800When do the double entries, Dr USD Account USD 1,000.00 Cr EUR Account USD 1,000
[functional and reporting currency is USD]No bank charges.
Do I revalue the EUR 800 at exchange rate on the transaction date. EUR 800 = USD 910?The difference of
USD 1,000 and USD 910 = USD 90 goes to realised exchange difference.Not sure I fully understand your question. I cannot recall an exam question with that wording
Transactions must be translated at the exchange rate of the date of the transaction
If a company has a foreign currency balance at the year and this is a monetary asset it must be re-translated at the balance sheet rate
The exchange difference would go to the profit and loss account
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