1. Using General Ledger
  2. When do I use historical rates?

When do I use historical rates?

Use historical rates to:

  • Calculate balances for equity and investment in subsidiary accounts.

  • Stabilize translated balances for long-term accounts.

  • Remeasure specific historical account balances with highly inflationary currencies in accordance with United States FASB Financial Accounting Standard 8.

  • Provide a weighted average rate for transactions that occur at different times.

  • Report journal entry line amounts in the units of money that were current at the time the transactions took place.

Note: Define historical rates before running translation to avoid having to retranslate your balances.