Foreign Currency Concepts
Below are the three key foreign currency concepts in GL
Conversion
• When foreign currency transactions that are immediately converted at the time of entry to the ledger currency of the ledger in which the transaction takes place refers as Conversion of currency.
Revaluation
•There might be fluctuation in the Exchange rate between the time when the transaction was entered & the end of the period, in this scenario Revaluation concept of Currency helps to adjust the liability or asset accounts that may be understated or overstated at the end of the period.
Translation
• Translation refers to reset an entire ledger or balances for a company from the ledger currency to a foreign currency.
Below are the three key foreign currency concepts in GL
Conversion
• When foreign currency transactions that are immediately converted at the time of entry to the ledger currency of the ledger in which the transaction takes place refers as Conversion of currency.
Revaluation
•There might be fluctuation in the Exchange rate between the time when the transaction was entered & the end of the period, in this scenario Revaluation concept of Currency helps to adjust the liability or asset accounts that may be understated or overstated at the end of the period.
Translation
• Translation refers to reset an entire ledger or balances for a company from the ledger currency to a foreign currency.
