Revaluation

Chart of accounts identify monetary accounts eligible for revaluation. Typical scopes include foreign-currency bank balances, receivables, payables, loans, unapplied receipts and intercompany balances. Classification and rate policy are reviewed for the entity; the configuration does not substitute for accounting-policy review.

Each run states entity, period, scope, rate date and reversal method. Approved bank reconciliations, subledger cutoff and required intercompany agreement precede calculation. A smaller scope still needs the dependencies relevant to its accounts. Missing-rate exceptions block posting until the required rate is supplied or a supported substitute is approved and recorded.

Revaluation lines summarises an account and currency. Revaluation items retain open-item detail where balances settle individually, including original basis, unreversed adjustments and the amount still open. Account-level bank and loan workings remain traceable to their source balances. The summary must reconcile to the supporting items or balance working.

Amounts are magnitudes with a recorded balance side. A positive carrying adjustment on a debit asset creates a gain; the same increase on a credit liability creates a loss. A positive economic gain credits FX profit and loss. Reductions reverse those directions. Offsetting assets and liabilities cannot be treated as though every increase were a gain.

Treasury Analyst calculates the run and reviews Unrealised FX by Account against aging, bank reconciliations and intercompany evidence. Exceptions return to their source; a changed balance or rate requires recalculation. Open-item counts and allocations support the review.

Controller, different from the preparer, approves the submitted version. Posting creates its journal once and retains the exact used-rate versions and item adjustments. A posted run is corrected through the reviewed reversal or replacement path, with period restrictions still enforced.

Reverse next period posts its exact linked reversal before new-period activity in the next eligible period. It restores the affected original basis before settlement proceeds. A scheduled but unposted reversal cannot be assumed to have happened; readiness stays blocked until its posting is confirmed.

The next revaluation starts from the resulting carrying balance. The original and reversing journals remain linked, so a replay or new calculation cannot duplicate either posting.

Delta retains the restated carrying amount. A later revaluation posts only the difference from that current amount. Revaluation settlements record how much of a carried item adjustment is released as the item settles; a partial settlement releases only its supported portion.

For receivables, the application compares the current unapplied-cash carrying value plus withholding receivable with the invoice carrying amount settled. For payables, current payable carrying is compared with payment-date cash value plus withholding payable. The bank separately removes its current carrying value and recognises disposal FX against payment-date cash value. Only these residual differences become realised FX. Releasing the allocation is tracking and derecognition, not a second profit-and-loss reversal or reclassification.

FX Gain and Loss Summary identifies revaluation and settlement amounts separately with their source periods. Prior recognised FX plus the residual at settlement explains the total movement. Reporting does not recalculate realised FX from the original rate while ignoring an unreversed adjustment.

Revaluation Runs Awaiting Approval and Unrealised FX by Account give Controller the review queue and workings. Auditor can follow the summary to item allocations, rate versions, settlement releases and the journal.