The previous article recorded the changes of gl_balances during foreign currency bookkeeping, see:
https://blog.csdn.net/x6_9x/article/details/119542591
So how does the balance table change when revaluation is performed?
why revaluation
Due to changes in the exchange rate, revaluation is required during financial analysis, and the revalued data can truly show the company's financial status. Therefore, the reason for revaluation is that the end-of-period exchange rate is inconsistent with the recorded exchange rate. The purpose of revaluation is to convert the outstanding foreign currency claims and liabilities at the end of the period into the functional currency at the end of the period exchange rate to report the company's financial status.
Principles and Basis Regarding Foreign Currency Treatment
1. Definition of exchange gains and losses Exchange gains and losses refer to the difference between each foreign currency account and each item of the foreign currency statement of the enterprise converted into the bookkeeping functional currency due to the difference in bookkeeping time and exchange rate. Exchange gains and losses are divided into two types: foreign currency transaction exchange gains and losses and foreign currency statement conversion exchange gains and losses according to the reasons for their occurrence. Foreign currency transaction gains and losses can be divided into realized foreign currency transaction exchange gains and losses and unrealized foreign currency exchange gains and losses according to whether they are realized in the current period.
There are two cases of exchange gains and losses:
(1) Exchange gains and losses arising from the difference between the foreign exchange buying and selling prices used in foreign currency exchange and the entry value.
(2) During the period of foreign currency monetary assets and liabilities held, exchange gains and losses arising from changes in the value of foreign currency monetary assets or liabilities due to changes in exchange rates.
2. Calculation methods of exchange gains and losses There are two methods of calculating exchange gains and losses: the one-by-one carry-forward method and the centralized carry-forward method.
The transaction-by-transaction carry-forward method means that for each foreign currency business, the enterprise should enter the account according to the market exchange rate on the date of business occurrence or the exchange rate at the beginning of the period; , the end of the year) and then adjusted according to the market exchange rate, the difference between the adjusted RMB balance at the end of the period and the original book balance is regarded as the current exchange gain or loss. Under this method, the increase of foreign currency assets and liabilities shall be converted at the market exchange rate selected by the enterprise, and the decrease of foreign currency assets and liabilities shall be converted at the book exchange rate. .
The centralized carry-forward method means that the enterprise's foreign currency accounts are usually kept at the selected market exchange rate (the exchange rate on the date of business occurrence or the exchange rate at the beginning of the period), and no exchange gains and losses are usually recognized. The exchange rate is adjusted, and the difference between the adjusted RMB balance at the end of the period and the original book balance is centrally calculated as an exchange gain or loss.
The results of the transaction-by-transaction carry-forward method and the centralized carry-forward method are consistent. The
transaction-by-transaction carry-forward method: it is more complicated to search or calculate the book exchange rate at any time. Centralized carry-forward method: It is not necessary to calculate exchange gains and losses at ordinary times, but to concentrate the calculation of exchange gains and losses at the end of the period.
EBS practice
A US dollar receivable business occurred as shown in the figure below. The exchange rate USD:CNY = 6
certificate is shown in the picture:
the balance table is shown in the picture:
change the end-of-period exchange rate to 3, which is equivalent to the appreciation of the RMB, and it is necessary to offset the accounts receivable by 3 yuan (RMB The income is reduced by 3 yuan, which is quite a loss), and the voucher is generated after the revaluation:
Summary:
The exchange gain and loss can be understood as a balance account, an expense account, the debit side increases the loss, and the credit side increases the profit.
References
Reference article (part of the text in this article refers to the following blog, if it is infringed, it will be deleted)
https://www.cnblogs.com/benio/p/9563832.html
http://blog.itpub.net/9182041/viewspace-682898/