This is an exchange rate addendum to a requirements agreement. It discusses the exchange rate and provides details on the way certain foreign currencies will be established.
Guam Exchange Rate Addendum
Category:
State:
Multi-State
Control #:
US-TC0615
Format:
Word;
PDF;
Rich Text
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FAQ
Under the temporal method, the fixed assets are translated using the rate in effect at the time the assets were acquired.
Fixed assets, inventories, and investments in equity shares are examples of non-monetary items.
Stock and retained earnings are translated at their historical rates, while income statement items are translated at the weighted average rate for the accounting period.
To do so all the items expressed in its functional currency should be translated in the presentation currency of choice. Assets and liabilities should be translated at the closing rate at the end of the reporting period while income and expenses shall be translated at the exchange rates at the day of transactions.
When the currency exchange rate is changed, a revaluation is calculated and profit or loss exchange rate adjustment transactions are created both for fixed asset module and ledger transactions. Individual or group currency revaluation transactions can be calculated for the value of objects of depreciated property.