You revalue current assets and current liabilities if they are posted in any foreign currency (other than local currency) because their expected value might vary depending upon the exchange rate prevalent at the time of reporting (period closing, year-end, etc.).
Usually, these revaluations are carried at the end of the period, and then reversed the very next day - as these are not actual change in the values of these (current) assets / liabilities, but rather reflect a notional change in their value, and as such reflect just an expected change AT THE TIME OF REPORTING only.
Actual changes in values should and are recorded in the system using other methods.
Remember to assign points if found useful.
Regards,
Gulshan
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