How to record FX gain on foreign restricted cash
Records the revaluation gain on restricted cash accounts held in foreign currency, such as those for local environmental bonds.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (Foreign) | Asset | 1,500.00 | - |
| Unrealized FX Gain | Revenue | - | 1,500.00 |
💡 Accountant's Note
Restricted cash is a monetary asset and must be revalued at each reporting date using the current spot rate.
Practitioner & Systems Framework
💻 ERP Architecture
Verify restricted cash GL accounts are included in the FX revaluation run profile
⚠️ Audit Flags
Treatment of restricted cash as a non-monetary asset (historical cost) in error
📄 Required Documentation
Confirmation of restriction terms and month-end exchange rate verification
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