Twin Cities Business Daily

How to compute for the exchange rate after appreciation or depreciation?

How to compute for the exchange rate after appreciation or depreciation? I'm really lost at this. Help please? Thank you. :)

Public Comments

1. You translate all items into your functional currency as soon as you acquire them, so BEFORE depreciation, and track the value of goods in your functional currency. "If your functional currency is the U.S. dollar, you must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Use the exchange rate prevailing when you receive, pay, or accrue the item." http://www.irs.gov/businesses/small/article/0,,id=130524,00.html