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 800
When 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.