Currency – Potential Gains And Losses Report

Purpose:
To determine the potential exposure to currency gains or losses and hence determine extent to which this exposure can be managed through hedging, and to determine unrealised gains and losses generated by balance sheet revaluations at month and year-end.

The report lists by chronological order within SL/PL Account, for all Open Transactions, transaction date, reference, amount in foreign currency, home currency amount at the time of the transaction, exchange rate at the time of the transaction, current home currency amount (calculated using current exchange rates), current exchange rate and, thus, the potential gain/loss arising from any movement in exchange rates since the transaction date. This report excludes all home currency SL/PL accounts as, by definition, there will be no foreign currency exposure in these account balances.

Preparation:
Obtain an up to date list of commercial exchange rates.
Input/update exchange rates as required – see Add & Amend Currencies & Exchange Rates.

Processing:
On the main menu click Currency > Potential Loss\Gain Sales, or; Click Currency > Potential Loss\Gain Purchases.
Select printer – see Printing Reports.
Click OK to print/display/export to selected file type. Customers and suppliers with whom you trade in home currency are not included.

Filing:
As required. Auditors and/or Banks may require an additional copy of the report at the month end or year end.