Foreign Exchange Rates
Entry Format
When entering foreign exchange rates on the Unit Details screen, the format should be the amount 1 unit of Reporting Currency would equal in Local Currency or Reporting Currency/Local Currency. For example, if reporting is USD and 1 USD equals .60 of another currency, the rate would be 1.666667 (1/.6).
note
You cannot enter a zero FX rate.
Types
- Weighted Average Rates: Blended foreign exchange rate for a period of time that is applied to Income Statement items.
- Spot Rates: Foreign Exchange rate on a specific date that is applied to Balance Sheet items.
Adjustments
Currency Translation Adjustment: The difference between Weighted Average rate and Spot rate, when Income Statement items have an impact on Balance Sheet items.