foreign currencies

toshi
toshi Registered Posts: 27 ? ? ?
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:

Comments

  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    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
    toshi Registered Posts: 27 ? ? ?
    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
    Bluewednesday Registered Posts: 1,624
    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
    Fee Registered Posts: 13 Regular contributor ⭐ ? ⭐
    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.
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