Example: Detailed Currency Restatement Gain/Loss on a Domestic Transaction
In this example, a Colombian company (COP) enters a domestic currency voucher and payment. The company uses detailed currency restatement and restates amounts in the U.S. dollar (USD). The ledgers and currencies are:
AA = COP
XA = USD
The example shows how the system calculates a gain/loss amount for the alternate ledger (XA), based on this information:
Date |
Description |
AA Ledger (COP) |
Exchange Rate (divisor) |
XA Ledger (USD) |
|---|---|---|---|---|
June 1 |
Voucher |
85,000 |
850 |
100.00 |
June 30 |
Payment |
85,000 |
860 |
98.84 |
The gain/loss amount in the XA ledger is –1.16.
These t-accounts show how the system distributes AA and XA ledger amounts for the voucher and payment:
