multicurrency-and-fx ยท diff
git:20260519.bd4658a to git:20260712.a867952
51 added, 4 removed. Audit A to A.
---
name: multicurrency-and-fx
- description: >-
- Use when implementing IAS 21 multicurrency accounting: functional currency,
- presentation currency, transaction currency, exchange-rate tables, settlement,
- realised and unrealised forex gains or losses, revaluation, and currency-safe ledger design.
+ description: 'Use when implementing IAS 21 multicurrency accounting: functional currency, presentation currency, transaction currency, exchange-rate tables, settlement, realised and unrealised forex gains or losses, revaluation, and currency-safe ledger design.'
metadata:
portable: true
+ do_not_use_when: Do not use for single-currency systems or statutory policy questions without the external accounting doctrine.
+ required_inputs: Provide functional and presentation currencies, rate sources, transaction dates, ledgers, and reporting requirements.
+ workflow: Apply currency capture, translation, remeasurement, gain-loss, rounding, and reconciliation rules in order.
+ quality_standards: Preserve rate provenance, balanced entries, deterministic rounding, period consistency, and audit trails.
+ anti_patterns: Do not overwrite historical rates, mix functional and presentation currency, or hide rounding differences.
+ references: Load the external accounting doctrine and local references named by this skill when the branch requires them.
+ compatible_with:
+ - claude-code
+ - codex
---
# Multicurrency And FX
+
+ <!-- dual-compat-start --><!-- dual-compat-end -->
+
+ ## Inputs
+
+ | Artefact | Required? | Purpose |
+ |---|---|---|
+ | Functional and presentation currencies | yes | Define measurement and reporting bases |
+ | Transaction dates and rate source | yes | Select traceable exchange rates |
+ | Monetary balances and reporting period | yes | Drive remeasurement and translation |
+
+ ## Outputs
+
+ | Artefact | Consumer | Acceptance condition |
+ |---|---|---|
+ | FX policy, postings, and reconciliation | Ledger and reporting workflows | Rate provenance, balanced entries, explained differences |
+
+ ## Capability contract
+
+ Read and search are required. Rate imports, remeasurement journals, translation entries, and historical corrections require explicit authority, period controls, and reconciliation evidence.
+
+ ## Degraded mode
+
+ Fallback without verified rates or doctrine: stop posting, preserve source-currency amounts, and report the missing rate or policy decision.
+
+ ## Decision rules
+
+ | Balance or event | Treatment | Failure avoided |
+ |---|---|---|
+ | Foreign-currency transaction | Initial recognition at approved transaction-date rate | Untraceable base amount |
+ | Monetary item at reporting date | Remeasure at closing rate | Stale carrying value |
+ | Non-monetary historical-cost item | Preserve historical rate | False FX gain or loss |
+ | Presentation-currency reporting | Translate under applicable doctrine | Mixing remeasurement and translation |
+
+ ## Domain anti-patterns
+
+ - Overwriting historical rates. Fix: version rates and preserve provenance.
+ - Posting only the converted amount. Fix: retain source currency, rate, and base amount.
+ - Using one rate type for every event. Fix: select rate by event and policy.
+ - Hiding rounding in revenue or expense. Fix: use controlled rounding accounts and reconcile.
+ - Mixing functional and presentation currency logic. Fix: separate remeasurement from translation.
Acknowledgement: Shared by Peter Bamuhigire, techguypeter.com, +256 784 464178.
## Use When
- A tenant books in one functional currency but invoices, pays, or receives in another currency.
- A group needs presentation currency reporting.
- Month-end FX revaluation is required.
## Hard Rules
- MUST define one tenant functional currency.
- MUST store transaction currency and functional-currency equivalent on journal lines or linked valuation records.
- MUST not mix functional and presentation currency as if they are the same ledger amount.
- MUST revalue open monetary items at period end where required.
- MUST distinguish realised from unrealised forex gains/losses.
## Currency Model
Track:
- Functional currency: primary economic environment of the tenant.
- Transaction currency: currency of invoice/payment/document.
- Presentation currency: reporting currency where different from functional currency.
- Rate source, rate date, rate type, and approval status.
## Posting Patterns
Foreign currency invoice:
- Post AR/AP and revenue/expense using transaction-date rate in functional currency.
- Preserve transaction-currency amount for settlement and subledger ageing.
Settlement:
- Clear AR/AP at original functional-currency carrying amount.
- Post cash at settlement-date rate.
- Difference goes to realised forex gain/loss.
Month-end revaluation:
- Revalue open monetary items at closing rate.
- Difference goes to unrealised forex gain/loss and revaluation adjustment.
- Reverse or update according to the tenant close policy in the next period.
## Outputs
- Currency policy.
- FX-rate schema.
- Revaluation job design.
- Realised/unrealised FX posting matrix.
- FX reconciliation report.