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Re: Accounting for forward currency contacts in Treasury

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Hi

There is no accounting entry at inception because foreignn exchange forward contracts are "off balanace sheet" meaning that there is no entry until value date becomes posting date. All international accounting standards such as IFRS and US-GAAP have this procedure. The valuation of the conctract has to be on the balance sheet and p/l. Other entries are not foreseen and also not required.

 

Regards

Juerg

juerg.heiz@treascon.com


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