Overview of Revaluations

The revaluation process is used to adjust account balances denominated in a foreign currency. Revaluation adjustments represent the difference in account balances due to changes in conversion rates between the date of the original journal and the revaluation date.

These adjustments are posted through journal entries to the underlying account with the offset posted to an unrealized gain or loss account. All debit adjustments are offset against the unrealized gain account and all credit adjustments are offset against the unrealized loss account. If the same account is specified in the Unrealized Gain Account and Unrealized Loss Account fields, the net of the adjustments is derived and posted.

For balance sheet accounts, the revaluation journal entries are reversed in the next period. AutoReverse can be used to automate the reversals. For income statement accounts that use the PTD method of revaluation, the revaluation journals aren't reversed since each period's revaluation adjustment is for that period.

In Oracle Fusion General Ledger, the revaluation functionality provides the following advantages:

• Full multicurrency functionality to eliminate currency barriers across a global business.

• Predefined revaluation rules to ensure consistency in generation of revaluation entries each period.

• Usage of prevailing currency normalization accounting standards including:

  • US Financial Accounting Standards Board, Financial Accounting Statement No. 52 (FAS 52), Foreign Currency Translation.

  • International Financial Reporting Standards, International Accounting Standard No. 21 (IAS 21), The Effects of Changes in Foreign Exchange Rates.

• Support for multiple balancing segments to provide clarity in tracking the profitability and performance for more distinct segments of your enterprise in any currency