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What Is The Difference Between Revaluation And Translation? |
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Answer» Revaluation is used to DETERMINE the position of foreign currency debtors, CREDITORS etc at the end of month; and it created revaluation journal entries. While Traslation is a functionality used to convert all balances including functional currency (say INR) balances in a given foreign currency (USD). Then, Trial Balance in that currency(USD) can be GENERATED. It is used whenof a subsidiary or BRANCH (INR) are required to be MERGED with another company reporting in different currency (USD). Revaluation is used to determine the position of foreign currency debtors, creditors etc at the end of month; and it created revaluation journal entries. While Traslation is a functionality used to convert all balances including functional currency (say INR) balances in a given foreign currency (USD). Then, Trial Balance in that currency(USD) can be generated. It is used whenof a subsidiary or branch (INR) are required to be merged with another company reporting in different currency (USD). |
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