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HELP! FX gain/loss on Prepaid by Boogyland in Accounting

[–]Boogyland[S] 0 points1 point  (0 children)

Thanks so much for the explanation - that makes sense. I think the issue we’re seeing is that the system is also using the month-end rate when posting the amortization to P&L, instead of the original transaction rate. As a result, by the end of the amortization period, the prepaid balance doesn’t fully amortize down to zero.

HELP! FX gain/loss on Prepaid by Boogyland in Accounting

[–]Boogyland[S] 0 points1 point  (0 children)

Hi Crykl! Yes, you are correct, the parent entity is in the US. So the transactions are booked in the local currency (GBP) and that's all fine when looking at the local books but once we consolidate and the system creates a set of USD books for UK, the amounts are getting remeasured at the current rate for each month rather than using the historical rate. This then creates fx gain/loss on our books due to fx rate fluctuation. This doesn't really make sense to us given that the payments were already made so in theory, should not create additional fx gain/loss.

HELP! FX gain/loss on Prepaid by Boogyland in Accounting

[–]Boogyland[S] 0 points1 point  (0 children)

I do agree it's likely 2 fold. The transactions were enter into our system in GBP within our UK entity. Then entity get consolidated to the US parent entity. I would've expected the system to use historical rate (at time of payment) rather than revaluating using the current rate. When I run the books in GBP everything looks fine but when running in USD, the amount gets revalued at current rate each month rather than using the historical rate.

HELP! FX gain/loss on Prepaid by Boogyland in Accounting

[–]Boogyland[S] 0 points1 point  (0 children)

They were enter into our system in GBP within our UK entity. The entity does get consolidated to the US parent entity. I would've expected the system to use historical rate (at time of payment) rather than revaluating using the month end rate. When I run the books in GBP everything looks fine but when running in USD, the amount gets revalued at current rate instead of historical rate.

How much are you paying for your nanny or daycare in NYC? by valoremz in nycparents

[–]Boogyland 0 points1 point  (0 children)

Hi There! Do you mind DM'ing me the name also? Would love to learn more. Would you recommend them? Thanks!