How to record FX revaluation on cash
Recording the month-end adjustment for cash held in a foreign currency bank account to reflect the current spot rate.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash (Foreign Currency Account) | Asset | 1,200.00 | - |
| Unrealized FX Gain | Revenue | - | 1,200.00 |
💡 Accountant's Note
At period end, the foreign currency balance is revalued using the closing spot rate. If the functional currency value increases, an unrealized gain is recognized.
Practitioner & Systems Framework
💻 ERP Architecture
Most ERPs automate this via a revaluation program that pulls rates from a central table.
⚠️ Audit Flags
Large fluctuations in exchange rates between reporting periods without corresponding hedge documentation.
📄 Required Documentation
Bank statement in local currency and the spot rate source (e.g., OANDA or ECB).
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
Discussion & Community Questions
Loading comments...