Nominal Ledger Revaluations

The need to revalue nominal ledger accounts normally comes about only due to changes of holding rate. Even in this event only certain balance sheet accounts may need to be revalued. Note that debtor and creditor ledger control accounts are automatically revalued as a result of revaluing the sales and purchase ledgers (see above) and so should not be revalued here.

Two journal entry options are supplied to undertake revaluation of individual accounts. These procedures allow accounts to be selected either one-by-one for revaluation, either at the current holding rate, or the current spot rate, or to revalue all accounts for a particular currency. Any exchange difference is posted to an exchange difference account, and this difference may be posted as a provisional entry if required — such as might be needed at year-end, when a true exchange rate is needed, regardless of the current holding rate.