Revaluation of currency balances in accounting

Revaluation of foreign currency balances upon purchase

The acquisition of foreign currency by companies is necessary for business development, for example, in order to import goods. The following entries should be made in accounting:

In the case when foreign currency is not purchased for import operations, the following should be recorded in accounting:

The financial result of the transaction is subsequently reflected:

• When the Central Bank exchange rate is less than the purchase rate, the difference (exchange rate) is taken into account as a component of costs:

Dt 91.2 Kt 57

The amount reduces the company's profit.

• Operating income appears provided that the Central Bank quotation exceeds the purchase rate:

Dt 57 Kt 91.1

The company's profits are growing.

Example 1. Bought $4500. The purpose of purchasing currency is to pay travel allowances to employees going abroad.

265.5 thousand RUB were transferred to the bank.

The bank purchased $ at the rate of 57.3 rubles/dollar. For the operation he wrote off the commission:

(265,500/4500 – 57.3) 4500 = 7,650 rubles.

On the day when the operation was carried out, the Central Bank exchange rate was 56.8 rubles/dollar.

Accounting for currency revaluation

To carry out accounting operations relating to currency movements, there is account 52 “Currency accounts”, which has 2 sub-accounts for settlements within the country and abroad of the Russian Federation. Let's look at how the balance sheet is formed for various currency transactions: let us remind you that they must be reflected exclusively in rubles.

Postings when purchasing currency

Organizations can buy the currencies of other countries for various purposes, crediting it to their foreign exchange account. In this case, the following entries will be made in the accounting entries:

• debit 57 “Transfers”, credit 51 “Current account” – funds for the purchase of foreign currency are transferred from the organization’s account;
• debit 52.1 “Currency accounts”, credit 57 “Transfers in transit” - crediting the purchased currency to the company’s special account;
• debit 10 “Materials”, credit 57 “Transfers in transit” - reflection of the result of revaluation of the currency balance on the account (the difference between the exchange rate of the Central Bank of the Russian Federation and the purchase rate), as well as a separate entry - accounting for the bank commission;
• debit 51 “Current account”, credit 57 “Transfers in transit” – crediting of unused funds.

If currency is not purchased for import payments, then the posting is simpler:

• debit 57 “Transfers”, credit 51 “Current account” – transfer of money for the purchase of currency;
• debit 52.1 “Currency accounts”, credit 57 “Transfers in transit” - crediting funds to a transit account;
• debit 91.2 “Other expenses”, credit 51 “Current account” - funds paid to the bank as remuneration.

The result of the revaluation is reflected below. If it is positive, the posting is made to the “Other income” account (debit 57, credit 91.1), and if negative, to the “Other expenses” account (debit 91.2, credit 57).

On the last day of the month, the revaluation of foreign currency balances is reflected:

• in case of profit - by debit 91.9, credit 99;
• in case of loss - debit 99, credit 91.9.

Postings when receiving currency from counterparties

If the company received currency as payment for goods or services from foreign partners, this money must be credited to the transit account (debit 52.1, credit 62).

IMPORTANT INFORMATION! The organization is obliged to sell 50% of the foreign currency received in this way within the country. Violation of this requirement is fraught with a fine in the amount of unrealized currency.

Postings for settlements in foreign currency

Having purchased currency, a company can use it for purposes permitted by law:

• pay obligations under foreign agreements (debit 60, credit 52.1);
• issue foreign travel allowances (debit 50, credit 52.1);
• repay foreign currency loans (debit 66, credit 52.1).

Sales of foreign currency earnings

As mentioned above, half of the foreign exchange earnings must be sold on the domestic market if these funds have not been spent on settlements with foreign partners within a week. This should be reflected in the balance sheet as follows:

• debit 57, credit 52.1 – direction of foreign currency funds for sale;
• debit 51, credit 91.1 – crediting the proceeds for foreign currency to the account;
• debit 91.1, credit 57 – write-off of sold foreign currency funds;
• debit 91.2, credit 51 – accounting for sales expenses.

The unrealized portion of foreign exchange earnings is credited to the account by posting: debit 52.1, credit 52.1.2.

Features of revaluation when selling currency

In modern conditions, organizations can sell from 0 to 25% of their foreign currency earnings to the state. This process is reflected as follows:

On the last day of the reporting period, currency balances are revalued. Possible entries upon receipt:

• arrived Dt 91 Kt 99
• loss Dt 99 Kt 91.9

Important! Unrealized earnings in foreign currency are credited to the account:

Dt 52.1 Kt 52.(1, 2)

Advance payments and exchange rate differences

Amounts of advance funds issued or received are subject to accounting at the rate current on the date that corresponds to the moment of transfer of the money supply or its receipt.

When, for example, raw materials are purchased on account of an advance payment previously paid, it is paid at the rate prevailing on the day the advance money was transferred.

Problems in accounting are possible if they are insufficient to fully cover the cost of the supplied raw materials. The value of the purchased product will be formed from two components:

• The advance amount, which is calculated in accordance with the quotation on the date of its sending.
• Cost not covered in advance. It is calculated using the exchange rate in effect on the day the raw materials were accepted for accounting.

The previously transferred advance payment is not subsequently subject to revaluation.

Features of payment in foreign currency for loans and borrowings

Loans received by companies are:

• Short-term (up to 12 months).
• Long-term (more than a year).

In the first case, accounts are used to account for them. 66, 66.21, 66.22, and operations are reflected as follows:

In accounting for long-term loans in $, €, £, accounts are used. 67, 67.21, 67.22:

Accounting for loans in foreign currency is carried out in a similar way using accounts 66.23 and 67.23.

Calculation of exchange rate differences when purchasing non-current assets

When a company purchases fixed assets, intangible assets in foreign currency under previously concluded contracts, their value is determined either at the Central Bank exchange rate or at another quotation agreed upon by the parties on the date the assets were included in accounting. After a while it is not recalculated.

Only payment arrears (if any) are subject to revaluation. Then exchange rate differences arise, positive or negative.

Example 2. The company purchased refrigeration equipment for $20 thousand. The Central Bank exchange rate on the day of purchase: 57.4361. Payment is deferred for a month.

On the last day of the month, the debt payment should be recalculated. The Central Bank quote is 57.6587, which is higher than the previous one. The company incurs costs - for a full settlement, it needs a larger amount of ruble money to pay the counterparty:

Accounts with a special revaluation procedure in 1C 8.3

It is worth saying a few words about the register of information for accounts with a special revaluation procedure. You can get to this register through the Main menu – Chart of accounts – More – Accounts with a special revaluation procedure:

Accounts in the chart of accounts that require a revaluation method different from the one described above are entered here. If the chart of accounts account is included in this list, then automatic revaluation of balances when performing transactions on the reporting date as a routine operation will not occur. Revaluation must be done manually using the document Transactions entered manually:

For example, 05/06/2016 the organization provided a service in the amount of 2000 USD,

thereby creating a debt on account 62.31:

If the information register of the Account with a special revaluation procedure is left blank, then at the end of the May period in the Currency Revaluation operation the account balance 62.31 will be revalued:

If account 62.31 is added to this list:

then at the Closing of the month the balance for it will not be revalued:

Thus, the accounting program of the 1C 8.3 Accounting 3.0 family can help a user who is faced with the difficult issue of accounting and revaluation of currency balances. The accountant simply needs to set everything up correctly and control the generated transactions.

Features of settlements with counterparties under contracts in foreign currency and in monetary units, accounting for exchange rate differences, at what point and how exchange rate differences are automatically calculated in 1C 8.3, transfer of currency to a foreign supplier under a foreign trade contract - all this is discussed in our course on working in 1C 8.3 Accounting in the Currency Transactions module. For more information about the course, watch our video:

Give your rating to this article: (
4 ratings, average: 5.00 out of 5)
Registered users have access to more than 300 video lessons on working in 1C: Accounting 8, 1C: ZUP

Registered users have access to more than 300 video lessons on working in 1C: Accounting 8, 1C: ZUP
I am already registered
After registering, you will receive a link to the specified address to watch more than 300 video lessons on working in 1C: Accounting 8, 1C: ZUP 8 (free)

By submitting this form, you agree to the Privacy Policy and consent to the processing of personal data

Login to your account

Forgot your password?

Exchange differences in tax accounting

The income received from the translation of foreign currency balances does not relate to profit from the sale of products. It is logical that it is not subject to VAT taxation.

The company revaluates foreign currency balances depending on the accounting method used.

How exactly fluctuations in currency quotes are reflected in VAT accounting are shown in the table:

Example No. 3. Goods worth €12,000 were shipped on November 2 (rate 74.2256), and paid for on November 26 (rate 75.1258). VAT at the rate of 18% must be paid in the following amount when using the method:

• accruals 160,327.30 (12,000 74.2256 0.18)
• cash 162,271.72 (12,000 75.1258 0.18)

Differences in exchange rates are taken into account in non-operating income (expenses) exactly as in accounting. This means that when they are positive, they are included in the amount subject to income tax.

Foreign exchange income under the simplified tax system and OSNO

Simplified people freely open foreign currency accounts for settlements with foreign partners.

Under the simplified tax system, income and expenses in foreign currency are recalculated into RUB at the Central Bank rate used on the relevant dates.

According to the Tax Code, simplifiers are not obliged to:

• revaluate foreign currency balances due to changes in quotes;
• carry out accounting of costs and income from such recalculation.

Therefore, unlike OSNO companies, simplified companies:

• no amounts arise in the form of positive (or negative) exchange rate differences.
• income and costs are established once - on the date of occurrence of income or expenses.

The explanation for such features is the cash method, which is the basis of the simplified tax system.

Important! Foreign exchange earnings are subject to conversion into RUB at the Central Bank exchange rate valid on the day it is included in income. It will be credited to a transit (not current) currency account. Advance amounts in foreign currency are included in income in the same way.

The company's costs incurred due to foreign currency loans and credits include:

• interest that must be paid regularly;
• exchange differences resulting from the revaluation of accrued %%;
• minus differences between the quotes of the Central Bank and the domestic market, which arise when purchasing foreign currency necessary for the timely execution of loan agreements;

Additional costs associated with expenses under surety agreements, credit risk insurance, and bank guarantees are also included in this list.

How to revaluate balances on foreign currency accounts

The procedure for business entities handling the currency of foreign countries in cash through the cash register and by non-cash transfers to accounts is strictly regulated by the legislation of the Russian Federation. However, some actions, for example, revaluation of balances on foreign currency accounts, cause difficulties for accountants who previously dealt only with ruble payments.

Revaluation of funds in foreign currency

Accounts for accounting for client assets in foreign currency can be opened in any section of the Chart of Accounts of financial institutions of the Russian Federation.

Transactions on them are displayed on the same 2nd order accounts on which ruble transactions are shown, with the opening of separate personal accounts in working currencies for these purposes.

Their numbering includes a three-digit code according to the Federal Classifier, for example: 974 BYR (Belarusian ruble), 156 CNY (yuan), 840 (US dollar), 978 (euro), 756 (Swiss franc). It is important to know:

Recalculation of funds in foreign currency (or translation of analytical accounting indicators into RUB) is very simple: the amount of foreign currency is multiplied by its official exchange rate established for the current date by the Central Bank of Russia. Its formula:

During the calculation process, changes in currency quotes are calculated. It leads to the emergence of a positive or negative exchange rate difference. Accordingly, the entrepreneur has an obligation to display income or expenses based on the results of recalculation. During this operation, the following nuances must be taken into account:

• revaluation is carried out separately for each currency code;
• its result is determined by the change in the RUB equivalent of incoming balances.

Rules for revaluation of balances

1. All foreign currency transactions carried out by financial institutions are necessarily reflected in the daily balance sheet in RUB.
   However, for the purposes of analysis and control, it is permitted to use software and accounting registers for transactions in currency. For the client, this means the bank providing him with bi-currency statements.
2. All incoming balances on foreign currency accounts are subject to recalculation, except for the amounts of prepayment issued/received and advances for goods shipped, work performed, services provided.
   The latter are displayed on the balance sheet accounts of mutual settlements for business transactions with counterparties.
3. If analytical accounts are issued only in foreign currency, the total balances for each of the personal accounts of the corresponding balance account of the 2nd order must be displayed simultaneously in the accounting registers and standard forms of analytical and synthetic accounting in RUB at the Central Bank exchange rate.
   This information is subsequently used to reconcile accounting forms.
4. In the Chart of Accounts of banks' accounting, the accounts of non-residents of the Russian Federation are separately indicated. It’s easy to identify them: if the term “non-resident” does not appear in the name of the military account, it means that transactions of residents are displayed using it.

Recalculation of amounts in foreign currency takes place at the beginning of each operating day and precedes the reflection of foreign currency transactions carried out on that date.

The difference in exchange rates, i.e.

between the past assessment of a property, security, certain liability or other asset, measured in ruble equivalent, and the real market price of the same asset, may have negative consequences in the activities of a legal entity.

Errors made in determining the real value of financial and property assets cause mistakes in the strategy and tactics of enterprise management, which leads to large fines from government regulatory structures.

For this reason, regular currency revaluation is important and should be carried out systematically.

It should be taken into account that the fulfillment of obligations between residents and non-residents in certain circumstances is expressed in ruble equivalent, but this amount is determined by the current exchange rate of a certain foreign payment unit at the time of conclusion of the agreement. As the exchange rate changes, the contract value must be adjusted.

Revaluation of accruals in foreign currency available on the account should be carried out in the following cases:

• during the formation of the accounting report;
• when the market exchange rate of foreign currency and the ruble changes;
• when replenishing an account or performing financial expenditure transactions using the funds available on it.

The need for revaluation is due to the fact that funds in a foreign financial unit are expressed in rubles in the accounting reports. Since exchange rates are constantly changing, all accruals available in the accounting records must be adjusted to reflect changes in exchange rates.

Source: https://schetavbanke.com/vidy-schetov/valyutnyj-schet/pereocenka-ostatkov.html

Rules for revaluation of currency balances

In order to carry out the revaluation of currency as prescribed, the following rules should be followed:

• Each transaction in foreign currency carried out with the participation of financial institutions should certainly be entered into the daily balance sheet in rubles.

But for monitoring and analysis, the use of transaction registers and software in foreign currency is permitted. The bank provides its clients with bi-currency statements.

• Recalculation is required for all incoming balances on foreign currency accounts. Exceptions are amounts of advance payment for goods (issued or received), advances for services or a complex of works performed. To reflect them, you should use balance sheet accounts for mutual settlements that are carried out for transactions with partners.
• In the case when analytical accounts are prepared only in foreign currency, the balances of each matching balance sheet account are reflected in rubles at the Central Bank exchange rate simultaneously in:
• accounting registers;
• forms of analytical and synthetic accounting.

This procedure is necessary for subsequent reconciliation of accounting documents.

The meaning of currency revaluation

It does not matter in which currency the account is opened and transactions are carried out.
When performing accounting, you must be guided exclusively by the provisions of Russian legislation. This means that foreign currency funds for accounting must be recalculated in ruble equivalent at the current exchange rate of the Central Bank of the Russian Federation. Thus, the revaluation of foreign currency balances is the periodic establishment of the ruble equivalent of foreign currency funds in the organization’s account at the rate of the Central Bank of the Russian Federation.

NOTE! An organization should reflect the rules for revaluing currency balances in its accounting policies in the form of an internal regulation.

Possible results of revaluation

Due to exchange rate fluctuations, deviations will inevitably occur, which can be calculated by comparing the previous revaluation figure with the last calculation made. The result obtained in the form of a specific amount may be:

• positive - the exchange rate difference exceeds the previous figure, which means that the company has generated additional income (accounting item “Other income”);
• negative - due to exchange rate fluctuations, the company lost a certain share of funds (reflected in “Other costs”).

Time frame for revaluation

The dates when you need to convert the currency in your account into rubles are as follows:

• on the day when the operation of depositing or withdrawing currency was carried out;
• on the day when the financial statements are prepared;
• on the last day of each calendar month.

The exchange rate indicator of the Central Bank of the Russian Federation on the specified date is the basis for calculating the revaluation of the foreign currency balance on the organization’s account.