Currency Revaluation Calculator
Calculate unrealized foreign exchange gains and losses for accounting compliance. Batch process ledger items for month-end reporting with multi-currency support.
| Description / Account | Currency | Amount (FC) | Book Rate | Spot Rate |
|---|
About
Accurate financial reporting demands precision when dealing with foreign currency assets and liabilities. Companies operating internationally must periodically adjust the value of foreign holdings to reflect current exchange rates, a process known as revaluation. This adjustment is critical for compliance with accounting standards such as ASC 830 (US GAAP) and IAS 21 (IFRS). Failure to correctly capture these fluctuations can lead to significant discrepancies in the balance sheet and misstated net income.
The Currency Revaluation Calculator assists controllers and accountants in determining the Unrealized Gain or Loss for multiple ledger items simultaneously. Unlike simple converters, this tool focuses on the delta between the Book Rate (historical rate at entry) and the Spot Rate (current closing rate). It allows for the aggregation of exposure across various currencies, providing a clear view of the FX impact on the financial position before these gains or losses are actually realized through a transaction.
Formulas
The core objective is to isolate the difference in value caused solely by exchange rate movements. The calculation compares the value of the asset or liability at the time it was booked versus its value at the reporting date.
First, determine the value in the functional (base) currency at both points in time:
Vbook = Aforeign × Rbook
Vspot = Aforeign × Rspot
Where:
- Aforeign is the amount in foreign currency.
- Rbook is the exchange rate at the transaction date.
- Rspot is the exchange rate at the revaluation date.
The Unrealized Gain or Loss (U) is the difference:
U = Vspot − Vbook
For indirect quotes (e.g., converting USD to JPY where USD is base), the division method applies:
AforeignRspot − AforeignRbook
Reference Data
| Currency Pair | Base Currency | Quote Currency | Standard Notation | Forex Volatility Impact |
|---|---|---|---|---|
| EUR/USD | Euro € | US Dollar $ | 1.0850 | High liquidity, moderate revaluation risk |
| GBP/USD | British Pound £ | US Dollar $ | 1.2650 | Sensitive to economic data, requires frequent checks |
| USD/JPY | US Dollar $ | Japanese Yen ¥ | 145.20 | Inverted quote convention, high precision needed |
| USD/CHF | US Dollar $ | Swiss Franc Fr | 0.8900 | Safe haven currency, lower variance typically |
| AUD/USD | Aust. Dollar $ | US Dollar $ | 0.6550 | Commodity-linked, high volatility in balance sheets |
| USD/CAD | US Dollar $ | Canadian Dollar $ | 1.3600 | Correlated with oil prices, distinct seasonal trends |
| USD/CNY | US Dollar $ | Chinese Yuan ¥ | 7.2500 | Managed float, regulatory considerations for revaluation |
| USD/INR | US Dollar $ | Indian Rupee ₹ | 83.50 | Emerging market risks, higher inflation adjustments |
| USD/BRL | US Dollar $ | Brazilian Real R$ | 5.1500 | High volatility, significant impact on Latin American ops |
| USD/ZAR | US Dollar $ | S. African Rand R | 18.75 | Mining sector exposure, frequent wide swings |