FX Issue on Addtional Reporting Currency

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Posted on by paul.asaro@equiteq.com

Hi All

We have multiple entities in BC, all with a GBP additional reporting currency (except the UK entity, obviously). We use one FX rate per month on the first day of the month for all transactions during that month.

My issue is we consolidate using Jet Reports in Excel. However, We have noticed FX variances (or leftovers) when removing balances from the balance sheet. For instance, we had a PPP Loan on the balance sheet for almost a year. When it was forgiven 10 months later, I booked an entry to zero out the loan account and move it to PL. However, the FX rate had moved in 10 months leaving a 17k variance. So although the $ balance was zero, the Add'l Reporting Currency had a balance in it.

Does anyone know how to remove these balances? And going forward, what is the solution other than rebalancing using an average FX YTD or something like that...

Thanks!

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