Translating equity at the historic rate (BPC 7.5 NW)

[former_member518018]

Hello,

For group reporting purposes, our accounting policy is to state our consolidated equity at historic rates. That means that net assets of all subsidiaries are translated to GBP at the closing rate and the income statememt of all non-GBP subsidiaries are translated at the yearly average rate. The equity for all non-GBP is not re-translated but the difference between the equity at the closing rate and the equity at the historic rate is posted to FCTR in reserves.

Anyone has any idea how to implement this in BPC?

Thank you.

[Former Member · Accepted solution]

Hi,

Your requirement can be addressed in BPC Currency Conversion table. You need to define a rule with formula, similiar to END-AVG depending on your rate types and destination account as FCTR reserves.

[former_member518018 · Accepted solution]

Hello,

Thanks for your response. I would really appreciate if you could expand on your comment above, as the rule needs to do several things:

-The opening balance of equity (in any particular BPC account code) needs to be at the previous period's closing rate.

-The movement during the period in the account needs to be at the average rate.

-FCTR needs to be calculated, which is the difference between the LC at closing rate, less the amounts mentioned above. But the FX will be posted to a different account.

Thank you very much again.

[Former Member · Accepted solution]

Hi...use below as reference and setup rules in currency conversion table.

Source flow, Destination account, Destination flow, Formula

F_999(closing),empty,empty,END

F_100(Opening),empty,empty,OPEEND

F_100(opening),FCTR account,F_180,END-OPENED

F_120(Additions),empty,empty,AVG

F_120(Additions),FCTR account,F_280,END-AVG

[former_member518018 · Accepted solution]

Lokesh,

You are a star. That was very helpful. Implementing the solution however, lead to me to a different problem, which is how to clear off these balances in the reporting currency only when required. As it stands, BPC can only post a journal in local currency which then gets translated to the average or closing. Should I set-up the FCTR to NOTRANS which will enable me to post the GBP (reporting currency amount) in the journal?

Thanks again.