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Foreign currency translation

leopardearthleopardearth Just JoinedRegistered Posts: 3
Hi all,

I wonder is anyone is dealing with foreign currency accounts - I have a question about month end posting

If we are to calculate currency loss/gain at month end, do we translation as below?

(Closing stock balance x closing exchange rate - Closing stock balance x opening rate) - (Opening stock balance x closing exchange rate - opening stock balance x opening rate ) = gain/loss

Or will it just be calculate the closing balance

Closing balance x closing exchange rate - Closing balance x opening rate = gain/loss for the month

I got myself right confused, not sure who to ask...
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