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Hi
Almost all balance sheet accounts which are maintained in foreign currency
might require revaluation during closure of books in case there is
fluctuation of exchange rates of such foreign currencies vis-a-vis your
company code currency. This is essential since you may have a statutory
requirement for fair accounting of valuation losses and (or) gains , as
permitted by the regulations of your country.
a. Every customer and vendor open item accounted in foreign currency and is
subject to exchange fluctuations needs to be reckoned for foreign currency
valuation.
b. Every G L balance sheet account maintained in foreign currency and on
open item basis when subjected to exchange fluctuations during closure of
books needs to be valuated ( example loans maintained on open item basis and
in foreign currency such as term loans etc) .
c. Every G L balance sheet account ( usually cash related items ) maintained
without open item management but in foreign currency requires to be
considered for valuation.
While a. and b. would be valuated on line item basis, c. would be valuated
based on closing balances as the time of closure of books.
Hope this helps.
Regards
VidhyaDhar
| | | ---------------Original Message---------------
From: Arman Tjandrawidjaja
Sent: Sunday, September 18, 2011 11:16 PM
Subject: F.05 Revaluations
Hi
As far as I know all the balance sheet open items such as Accounts
Receivables and Accounts Payables have to be included in the revaluation.
Some non-open items also need to be included i.e. cash & cash equivalents
and prepaid expenses.
B/S accounts that need to be excluded are the ones that are valued by
historical cost, i.e inventory, fixed assets, equity.
Hope that helps.
Regards,
Arman |
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