Foreign Currency Transaction Checklist ( FINANCE )

This checklist is designed to ensure that all foreign currency transactions are properly documented, recorded, and compliant with financial regulations. It helps to manage exchange rate fluctuations and ensures accurate reporting.

• Identify Foreign Currency Transactions

  List all transactions that involve foreign currency, including purchases, sales, and payments.

• Determine Exchange Rates

  Gather the exchange rates applicable to each transaction date from a reliable source.

• Convert Transaction Amounts

  Convert all foreign currency amounts into the base currency using the determined exchange rates.

• Document Supporting Evidence

  Collect and organize all invoices, contracts, and other related documents for each transaction.

• Record Transactions in Accounting System

  Enter the converted amounts and details into the accounting system to ensure accurate records.

• Review for Compliance

  Ensure all transactions comply with financial regulations and company policies regarding foreign currency.

• Prepare Foreign Currency Reporting

  Compile a report reflecting the impact of foreign currency transactions on financial statements.

• Conduct Periodic Review

  Schedule regular reviews of foreign currency transactions to adjust for any necessary accounting changes.