Balance Sheet Revaluation
If you use Costpoint Multicurrency and process transactions in currencies other than your firm’s functional currency, Costpoint provides the features you need to comply with Generally Accepted Accounting Principles (GAAP) standards for the United States for the following:
- Revaluation of balance sheet account balances based on fluctuations in currency exchange rates
- Disclosure of gains or losses resulting from revaluation of accounts as part of comprehensive income
Related Topics:
Balance sheet revaluation is the process of adjusting the balances of balance sheet accounts to reflect fluctuations in currency exchange rates, so that you can disclose the resulting gains or losses on your financial statements.
Example Balance Sheet Revaluation
Suppose that at the end of the second period of the year, you have the following for your accounts payable account:
Comprehensive Income Reporting
The gain or loss resulting from the revaluation of balance sheet accounts is considered a component of comprehensive income.
Set Up Costpoint for Balance Sheet Revaluation and Comprehensive Income Reporting
To set up Costpoint for balance sheet revaluation and comprehensive income reporting, complete the procedures listed in this section.
Perform the Balance Sheet Revaluation
View this section to learn about the steps for the balance sheet revaluation process.
Generate Financial Statements That Include Comprehensive Income
To generate the financial statement that discloses comprehensive income: