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Aug 30, 2023 at 08:17 PM

Non monetary remeasurement - IAS21 - CPC

125 Views Last edit Sep 17, 2023 at 11:56 PM 3 rev

Dear Gurus,

We need some help.

We have a system configured with Functional currency = USD

Company code currency = BRL

Other additional currencies such as EUR, GBP, etc

We have a requirement for a Presentation Ledger where posts in BRL (Document currency) must be converted to USD and then by the end of month we have to do a remeasurement from original value of USD back to BRL (it is not a FX valuation).

Example:

Exchange rate on day 1 is 1 USD = 5 BRL

Posted on day 1 1000 BRL in Brazilian company

1000 BRL = 200 USD

Then by the end of month exchange rate now is 1 USD = 5.2 BRL

Normal FX would calculate 1000 BRL = 192.31 USD (we do not want that)

Remeasurement will calculate: 200 USD (original valur on day 1 on functional currency value) = 1040 BRL

40 BRL gain

This is the only revaluation we want.

Using advanced foreign valuation is performing both calculations for the same account and thus given us a wrong value.

Can someone please guide us on how can we achieve this remeasurement only calculation without FX valuation and specific for 1 ledger (not leading ledger).

Thank you.