FXTalking Shop

Talking Shop: Allocating Transaction FX Impacts

By June 24, 2021July 4th, 2021No Comments

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected].

Member question: “As it relates to the reporting of transaction FX impacts (revaluation of non-functional currency monetary assets and liabilities—cash, AR, AP, etc.), does your company allocate these impacts to the business or is that impact kept at corporate?”

Peer answer: “We’ve discussed this a lot recently. Historically, the FX gain/loss is kept at the business level (with the thought that the business needs skin in the game for any requests treasury might have).

  • “As we streamline the process a bit more (implementing FiREapps, etc.), we might move the gain/loss to corporate. But at least for now, it’s staying at the business level.”

Member response: “Thanks. Can you share why you are evaluating shifting the FX impacts to corporate from the business?”

Peer response: “We’re in the final stages of our FiREapps implementation project—so one viewpoint is that now that we’re less dependent on local teams for exposure data, we at corporate treasury can take on the FX results.

  • “Not exactly a done deal yet—keeping the local business teams involved can be helpful in case we run into issues with accounting entries being booked late, etc. Always good to have allies on our team!”
Justin Jones

Author Justin Jones

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