Hi there,
I am a small UK based business and last year I had some dealings in euros ( basics, invoices + payments)
At the beginning of the year I had a balance of X then throughout the year I had invoices and payments.
I am unsure which date I need to use to re-evaluate the euros figures back to the reporting currency ie GBP.
1 - Do I need to re-evaluate my opening balance ? if so, with the FX rate as of 1st of April ?
2- Invoices and payments throughout the year ? Spot rate of the day the transaction took place ?
3- Closing balance ? Statement date ( my statement for example was issued on the 27th feb) or closing year end balance 31st March ?
And finally, what is the appropriate manner to calculate the fx loss or gain ?
Many thanks for your help !
I am a small UK based business and last year I had some dealings in euros ( basics, invoices + payments)
At the beginning of the year I had a balance of X then throughout the year I had invoices and payments.
I am unsure which date I need to use to re-evaluate the euros figures back to the reporting currency ie GBP.
1 - Do I need to re-evaluate my opening balance ? if so, with the FX rate as of 1st of April ?
2- Invoices and payments throughout the year ? Spot rate of the day the transaction took place ?
3- Closing balance ? Statement date ( my statement for example was issued on the 27th feb) or closing year end balance 31st March ?
And finally, what is the appropriate manner to calculate the fx loss or gain ?
Many thanks for your help !