The term FASB refers to Financial Accounting Standards Board. This is a norm that regulates American Accounting (and is adopted in other countries). In Brazil, we have the S.A. Laws and the NBC regulations.
The "FASB 52" (FASB Statement 52) handles Monetary Variation of Accounting Statements that must be presented by American companies that have branches around the world.
Our system meets this norm through the Monetary Variation routines
Calculation Formula
Both Monetary Variation routines perform the calculation from the following calculation:
Variation= Currency X Balance - ((Currency 1 Balance)/Currency X Rate)
In which:
a) Currency X Balance -> Balance in Currency X up to the period in which you want to calculate the variation.
b) Currency 1 Balance -> Balance in Reals
c) Currency X Rate -> Rate to be used for calculating Monetary Variation. We can have:
Average -> Average rate of month
Monthly -> Rate on last day of month
Daily -> Rate on the day in which you are calculating the Variation
Accounting Entry
The Accounting Entry generates a double entry between the Monetary Variation Account (entered in the Chart of Accounts) and the account that has experienced the Variation.
If you do not want to use the account of Variation calculation itself for the Accounting Entry, you must use the Reduction Account (entered in the Chart of Accounts "CTARED"). In this case the Accounting Entry will be a double entry between the Monetary Variation Account and the Reduction Account of Monetary Variation.
NOTE: The Siga also meets the FASB 8 (although it also has been replaced by the FASB 52 itself).
Access Level
Level 1 (Customer Access)
Language
Spanish, English