Foreign Currency Revaluation Adjustment

Professional Guide

This task enables accountants to calculate foreign currency revaluation adjustments by comparing transaction-level foreign amounts with original and revaluation exchange rates. Using SUMPRODUCT allows multiple conditions without helper columns, preserving audit clarity. It is particularly useful at month-end or quarter-end close when unrealized FX gains or losses must be recognized accurately. The model can be extended by entity, account, or currency, supporting multinational operations. Compared to manual calculations, this approach reduces error risk and improves consistency across reporting cycles. It aligns well with IFRS and GAAP remeasurement concepts when applied with approved exchange rates and accounting policies.