Foreign Currency Reporting of Fixed Asset Depreciation

foreign currency reporting 2Companies primarily enter fixed assets in functional currency, which is the currency used for its principal business. So a U.S. based company would enter most of their assets with U.S. dollars. If they own subsidiaries in other countries than those assets can be entered with a different reporting currency. A foreign currency reporting conversion module would then be necessary to report in either functional or reporting currency.

Bassets eDepreciation includes an optional foreign currency module that allows the user to easily generate depreciation reports in different currencies.  The Currency Conversion module enables each individual asset to be stored in the native currency of that country. This flexibility permits reporting of the monthly depreciation expense in appropriate dollar amounts as needed.

When reports are generated, you can select a currency type for the report. For each asset being processed, Bassets eDepreciation will:

  • Find the correct currency type.
  • Determine the year and/or month to get the correct conversion rate for both acquisition and disposal.
  • If the report is being run for the same currency, no conversion is required.
  • If the report is being run for the reporting currency, the numbers will be multiplied by the correct conversion rate.

An integrated foreign currency module greatly reduces the errors that can occur when using a spreadsheet or manually calculating conversions. All standard reports can be run in either functional or reporting currency to display cost, depreciation calculations and net book value using the selected currency.

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Foreign Currency Conversion of Fixed Assets

Companies primarily enter fixed assets in functional currency, which is the currency used for its principal business. So a U.S. based company would enter most of their assets with U.S. dollars. If they own subsidiaries in other countries than those assets can be entered with a different reporting currency. A currency conversion module would then be necessary to report in either functional or reporting currency.

Bassets eDepreciation includes an optional foreign currency module that allows the user to easily generate depreciation reports in different currencies.  The Currency Conversion module enables each individual asset to be stored in the native currency of that country. This flexibility permits reporting of the monthly depreciation expense in appropriate dollar amounts as needed.

Here is a screen shot of a sample exchange rate:

Foreign Currency 2

This form allows for an unlimited list of defined currencies. For each currency, you can then select the effective date, exchange rate and rate type. This combination of variables covers many different reporting scenarios based on the choice of rate type.

As an example, if the base currency were US Dollars, an asset with a currency type of EUR (Euro) would have its numbers multiplied by the correct currency conversion rate.  On the other hand, if an asset was stored with US Dollars and the report was generated for EUR, the dollars would be multiplied by the inverse rate (1/rate). The conversion rate for the current reporting period can be entered at any time prior to the report being generated.

An integrated foreign currency module greatly reduces the errors that can occur when using a spreadsheet or manually calculating conversions. All standard reports can be run in either functional or reporting currency to display cost, depreciation calculations and net book value using the selected currency.

Questions or comments on this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.