What does foreign currency business accounting include? Foreign currency business refers to the company's collection and payment, settlement and pricing of payments in various foreign currencies. Waiting for business. In accounting, foreign currency business refers to accounting business that does not use the accounting standard currency as the unit of measurement. There are five main types of economic business involving foreign currencies:
1. Foreign currency borrowing business. That is, the business of obtaining foreign currency loans from banks or other financial institutions and returning the loans.
2. Foreign currency exchange business. That is, the business of exchanging one currency for another.
3. Invest in foreign currency capital business. That is, investors invest foreign currency as capital into the enterprise's business.
4. Foreign currency trading business. That is, the accounting business of payment collection and settlement in foreign currencies.
5. Foreign currency conversion business. That is, the accounting business of restating an amount in a foreign currency into another currency. Foreign currency conversion does not mean that foreign currency economic business such as exchange or transaction actually occurs, but only changes in the original unit of measurement.
2. The specific content of foreign exchange
Usually refers to foreign exchange A currency expressed as a means of payment used for international settlement. According to my country's foreign exchange management regulations, the specific contents of foreign exchange include: 1. Foreign currency; 2. Foreign currency securities, including government bonds, corporate bonds, stocks, coupons, etc.; 3. Foreign currency payment vouchers, including bills (cheques, promissory notes, bills of exchange, etc.), bank deposit certificates, etc.; 4. Other foreign exchange funds. Gold can be used as a means of international payment and settlement and performs the functions of world currency. Therefore, gold is also included in foreign exchange in many countries.
3. Foreign exchange rate
Exchange rate refers to the exchange rate between two currencies. The ratio between one currency unit and another currency unit is used to express the price of another currency unit, so it is also called the exchange rate. According to different requirements and different functions, the exchange rate can have many types, such as buying exchange rate, selling exchange rate and intermediate exchange rate, which can be divided into current exchange rate and historical exchange rate, accounting exchange rate and book exchange rate, etc.
1. Buying exchange rate,Also known as the foreign exchange buying price, it refers to the exchange rate at which banks buy foreign currencies in RMB.
2. Selling exchange rate, also known as foreign exchange selling price, refers to the exchange rate at which banks sell foreign currency to earn RMB.
3. The central exchange rate, also known as the foreign exchange central parity rate, is the average price of the foreign exchange buying price and the foreign exchange selling price calculated in RMB.
4. Market exchange rate refers to the middle price of the market exchange rate announced by the People's Bank of China.
5. Contract exchange rate refers to the exchange rate agreed upon by both parties in the contract for the conversion of different currencies.
6. Bookkeeping exchange rate refers to the exchange rate used by enterprises for accounting processing when conducting foreign currency economic business.
7. The book exchange rate refers to the exchange rate that has been registered by the enterprise. It may be the market exchange rate at the time or the contract exchange rate, also known as the historical exchange rate.
8. The current exchange rate refers to the current exchange rate at a specific point in time, that is, the market exchange rate when converting foreign currencies.
9. Historical exchange rate refers to the exchange rate at a certain point in the past. The historical exchange rate is relative to the current exchange rate. The market exchange rate on the previous trading day is the historical exchange rate relative to that day, and the current exchange rate on that day is also the historical exchange rate relative to the next day.
4. Exchange rate pricing
The foreign exchange rate of a country is Whether to express the price of domestic currency in foreign currency or to express the price of foreign currency in domestic currency is called exchange rate pricing. There are two options for pricing methods, one is called the direct pricing method and the other is called the indirect pricing method.
1. Direct pricing method. It uses a certain unit of foreign currency as a standard to calculate the conversion of several units of domestic currency. For example, 1 US dollar = 6.03 yuan. Our country currently adopts this pricing method.
2. Indirect pricing method. It uses a certain unit of domestic currency as the standard to calculate the conversion of several units of foreign currency. For example, in the London foreign exchange market: 1 British pound = 4.1514 German marks. The United States, the United Kingdom, New Zealand and other countries adopt this method.
5. What is an accounting book?Base currency and reporting currency
The accounting currency refers to the accounting currency uniformly used by an accounting entity in accounting.
The reporting currency refers to the currency used when preparing accounting statements. The accounting functional currency may or may not be consistent with the reporting currency.
my country's "Accounting Standards for Business Enterprises" stipulates that RMB is the standard currency for accounting. Enterprises whose business revenue and expenditure are mainly in foreign currencies can also choose a certain foreign currency as their accounting standard currency, but the accounting statements prepared should be converted into RMB and reflected. This means that the official reporting currency of Chinese enterprises can only be RMB, but the accounting currency can be selected. In accounting practice, based on the choice of accounting standard currency, it is divided into a unified accounting system and a separate accounting system.
1. The unified accounting system, also known as the unified currency accounting system, uses a certain currency as the accounting standard currency to record all economic transactions.
2. The split-account system, also known as the split-currency accounting system, records accounts directly in the original currency when economic business occurs, and then separates various currencies at the end of the period. The balance and amount of the foreign currency account are converted into RMB, and then the accounting statements are prepared.
6. Principles of foreign currency accounting
According to the "About Enterprise Foreign Currency Business Accounting after the Reform of the Foreign Exchange Management System" Provisions on Handling" Enterprises should handle foreign currency business according to the following principles:
1. The enterprise’s foreign currency accounts include foreign currency cash, foreign currency bank deposits, and claims converted into foreign currencies (such as Accounts receivable, notes receivable, advance payments, etc.) and debts (such as short-term loans, long-term loans, accounts payable, notes payable, wages payable, dividends payable, advance payments, etc.). Enterprises that are not allowed to open current exchange accounts should set up foreign currency accounts other than foreign currency cash and foreign currency bank deposits to account for the foreign currency business of the enterprise.
2. When an enterprise conducts foreign currency business, it should convert the relevant foreign currency amount into the recording currency amount for accounting purposes.
3. Unless otherwise specified, all accounts related to foreign currency business shall use the market exchange rate when the business occurs as the conversion exchange rate, or the exchange rate when the business occurs may be used. The market exchange rate at the beginning of the current period is used as the conversion exchange rate, which is selected by the enterprise itself.
4. The buying and selling prices and prices resulting from the enterprise's settlement of sales or purchase of foreign exchange from banksThe difference between the market exchange rates is recorded in "financial expenses", "construction in progress" and other accounts.
5. At the end of the month (or quarter, year), the closing balances of foreign currencies in various foreign currency accounts should be converted into the amount in the recording currency according to the market exchange rate at the end of the period. The difference between the amount in the recording currency and the amount in the original bookkeeping currency is treated as exchange gains and losses and recorded in "financial expenses", "construction in progress" and other accounts.
6. Enterprises that engage in multi-currency credit or financial leasing business can also adopt the currency-based accounting system according to actual needs.
7. If the invested capital needs to be converted into the accounting functional currency, the relevant asset account shall be converted according to the market exchange rate on the day when the capital contribution is received. For the "paid-in capital" account, if the exchange rate is stipulated in the contract, it shall be converted according to the exchange rate stipulated in the contract; if there is no exchange rate stipulated in the contract, the following methods shall be used in different situations: ① When the registered currency is consistent with the accounting standard currency, the exchange rate shall be converted according to the exchange rate stipulated in the contract. The market exchange rate at the time of investment. ② When the registered currency is inconsistent with the accounting standard currency, the conversion shall be based on the market exchange rate when the enterprise first receives the capital contribution; if the investor contributes capital in installments, the capital contribution in each period shall be based on the market exchange rate when the capital contribution is first received. Exchange rate conversion. ③ The difference in the accounting standard currency caused by the difference in the conversion exchange rate used in the relevant asset account and the paid-in capital account shall be treated as capital reserve.
8. Enterprises that need to establish a sinking fund should add a detailed account of "XX foreign currency sinking fund account" under the "bank deposit" account for separate accounting.
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