foreign currencies

toshi

If you transfer funds between a Sterling Bank Account and Euro Bank Account, what rate of exchange should one use? Should there be any gain/loss in the currencies variance ?


Any help will be appreciated :001_wub:

Bluewednesday

You should use the exchange rate as listed on that day.

Any difference in the sterling conversion is posted to foreign exchange losses or gains

toshi

foreign exchange

thanks for the quick reply - So this means that I need to change the rate on the system every time?

Do you use forward contact rates ? I any advice will be helpful.

Bluewednesday

There is a whole accounting standard dealing with those issues which you will need to get a handle on. Is there a line manager who can help you with this?

Fee

Our company uses set rates that are updated on the 1st of each month. If we need to transfer money between currency accounts we use our own internal rate and any difference is coded to forex gains/losses.