Foreign Currency Business

2010/12/1 10:42:00 33

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Accounting For Foreign Currency Business

Foreign currency business refers to the company's

foreign country

All kinds of currencies include payment, payment and settlement.

stay

accounting

On the other hand, foreign currency business refers to the accounting business which does not take the bookkeeping standard currency as the unit of measurement.

That is to say, in the business of collecting, paying, clearing and valuing money other than the currency of the bookkeeping standard, enterprises in our country generally take Renminbi as the bookkeeping standard currency, and pay in other currencies, and settle accounts in some foreign currencies as the bookkeeping standard currency.

Transactions between domestic enterprises are priced in currencies other than bookkeeping currencies, and they are also foreign currency businesses.

Import and export business and foreign currency

business

There is a certain link, but not all import and export businesses are foreign currency businesses.

For example, certain enterprises in China use Renminbi as the bookkeeping standard currency and import a number of commodities to the United States. If they are settled in dollar terms, they will be foreign currency businesses, but if they are settled in Renminbi, they will not be foreign currency businesses.

In accordance with the basic accounting elements identified in China's enterprise accounting standards, the following basic classifications can be made for foreign currency business of enterprises: foreign currency business caused by changes in assets, foreign currency business caused by changes in liabilities, foreign currency business caused by changes in owners' equity, foreign currency business caused by income increase or decrease, foreign currency business caused by cost increase and decrease, and foreign currency business caused by profit increase or decrease.