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what is the difference between Revaluation and Translation?
what are the steps in GL?
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Answer Posted / raghu kalavendi
Revaluation increases or decreases the value of Assets and
liabilities due to currency fluctuations.
Translation converts functional balances to target currency
balances.
The increase or Decrease in value due to Revaluation is
posted to Revaluation reserve A/C
Due to Difference in Exchange rates used to translate
Assets/Liabilites and Income/Expenses, balance is Posted to
Cumulative translation Adjustment Account.
| Is This Answer Correct ? | 33 Yes | 4 No |
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