Accounting of exchange rates according to the Circular

Businesses need exchange rate applied when accounting the transactions related to foreign currencies and đexchange rate differences arising in the period and at the end of the accounting period.


exchange rate accounting

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I. How to record the World Bank's exchange rate arising in the period

a / When buying supplies, goods, fixed assets or services in foreign currencies:

Debit of 151, 152, 153 .. (actual exchange rate on the transaction date)

Export debt (foreign exchange loss)

Having 111, 112 (according to the exchange rate recorded in the accounting book)

With 515 (CLTG interest)

b / When buying supplies, goods, fixed assets or services but not yet paid, when borrowing or receiving internal debt ... in foreign currencies, based on the actual exchange rate on the transaction date, record:

Debit of 111, 112,

There are 331, 341, 336

c / When making advances to sellers in foreign currencies to buy goods or service fixed assets:

  • The accountant records the advance amount to the seller at the actual exchange rate at the time of the advance, recording:

Export debt (actual exchange rate on the advance date)

Export debt (loss of World Bank)

Having 111, 112 (according to the exchange rate recorded in the accounting book)

With 515 (CLTG interest)

  • When receiving supplies, goods, fixed assets or services from the seller:

+ For the value of supplies, goods and services corresponding to the amount of foreign currency advanced to the seller, recorded at the actual exchange rate at the time of advance payment:

Debt of 151, 152, ...

With 331 (actual exchange rate on advance)

+ For unpaid value, the accountant records the actual exchange rate at the time of transaction (transaction date).

Debit of 151, 152 .. (actual exchange rate on the day of transaction)

Having 331 (actual exchange rate at the transaction date)

d / When paying debts payable in foreign currencies

Debit of 331, 341 (exchange rate recorded in accounting book)

Export debt (loss of World Bank)

There are 111, 112 (exchange rate recorded in accounting book)

With 515 (CLTG interest)

II. Accounting of World Bank accounts due to revaluation of monetary items denominated in foreign currencies

a / When preparing a financial statement, the accountant re-evaluates the monetary items denominated in foreign currencies at the actual exchange rate at the reporting time:

  • If CLTG arises, record:

Debit of accounts of 1112, 1122, 128, 228, 131, 136, 138, 331, 341 ...

Credit in Account 413

  • If there is a loss in World Bank, record:

Debit of 413 Account

Credit in accounts of 1112, 1122, 128, 228, 131, 136, 138, 331, 341 ...

b / Accounting of foreign exchange differences arising from revaluation of monetary items denominated in foreign currencies:

The accountant shall transfer all the difference of the re-evaluated exchange rate (according to the offset of the amounts arising on the Debit side and the Credit side of the 413 TK account) into the 635 or 515 TK account to determine the business results.

Debt of 413 / Yes 515

Or Debt 635 / Yes 413

III. Provisions on exchange rates and exchange rate differences

Exchange rate differences mainly arise in the cases

- Actual trading, exchanging. payment of economic transactions arising in foreign currencies in the period

- Revaluation of monetary items denominated in foreign currencies at the time of preparation of the financial statements

- Converting financial statements prepared in foreign currencies into VND

Principles of determining exchange rates and handling of deposit rate

a / Enterprises apply actual exchange rates to convert them into accounting currency according to the following principles:

Actual exchange rate when buying and selling foreign currencies (spot foreign currency trading contract, forward contract, futures contract, option contract, swap contract) is the exchange rate signed in the contract. foreign currency trading between businesses and commercial banks.

In case the contract does not specify the payment rate, the enterprise shall record accounting books on the following principles:

+ Actual exchange rate when recording receivables: This is the buying rate of the commercial bank where the enterprise designates customers to pay at the time of transaction.

+ Actual exchange rate when recording payable debts: is the selling rate of the commercial bank where the enterprise is expected to transact at the time the transaction arises.

+ Actual exchange rate when contributing capital or receiving contributed capital: is the buying rate of foreign currency of the bank where the enterprise opens its account (account) to receive capital from investors at the date of capital contribution;

+ Property purchase transactions or expenses paid in foreign currencies immediately, the actual exchange rate is the buying rate of the commercial bank where the enterprise makes payment.

b / Enterprises may choose to apply book exchange rates on the following principles:

The exchange rate included

- Specific exchange rate: Is the exchange rate when recovering receivable debts, deposits, deposits or settling debts payable in foreign currencies determined according to the exchange rate at the time of arising transactions or reassessment time. end of term.

Weighted average mobile rate: The exchange rate used on the Credit side of the account when making payment in foreign currencies. This exchange rate is determined on the basis of the total value reflected in the Debit side of the money account divided by the total actual amount of foreign currencies at the time of payment.

c / The exchange rate for reassessment of monetary items denominated in foreign currencies is the average transfer rate at the end of the period of the commercial bank where the enterprise regularly has transactions (chosen by the enterprise) at the time of preparation. Financial statements

The whole of exchange rate differences due to revaluation of monetary items denominated in foreign currencies (according to the net amount after clearing the amounts arising on the Debit side and the Credit side of the Import and Export account) are transferred to financial expenses or Revenue from financial activities to determine the business results.

IV. Accounting principles of exchange rate differences

At the same time, enterprises must keep track of their original currencies on the detailed accounting books of accounts: cash, bank deposits, receivables, payables, and owners' contributed capital.

All exchange rate differences arising in the period are immediately reflected in 515, 635 of the reporting period.

Enterprises must re-evaluate monetary items denominated in foreign currencies according to the average transfer exchange rate at the end of the period of the commercial banks where the enterprises regularly have transactions at all times of preparation of financial statements as prescribed by law.

Enterprises are not allowed to capitalize the deposit assets' value into the uncompleted asset value.



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