The free online event held in English with resources in French and Spanish.
This webinar covered the proposals in relation to Foreign currency translation that are set out in the International Non-Profit Accounting Guidance Exposure Draft 2 (INPAG ED2).
The webinar took the following questions and comments from participants:
Q1: What’s the difference between functional currency and presentation currency or reporting currency?
Q2. Sometimes donors want to see the grant or project that they fund reported in their own currency. How can that work?
Q3. What exchange rate should be used to recognize grant revenue that comes in a different currency from your functional currency?
Q4. If an NPO spends money on overheads in functional currency over time, and allocates them to a foreign currency grant, at the end of the month, or year or grant period – what exchange rate should be used?
Q5. Why is it not better to keep track of grant transactions in the donor currency, and later convert to functional currency for presentation purposes. This approach makes periodic donor reporting simpler. What benefit is there for tracking in functional currency?
Q6. What happens when you have a donor, recipient and sub-grantee all in different functional currencies?
Q7. How should exchange gains and losses arising from grant revenue be accounted for? Is it possible that there could be a loss in the ‘restricted grant’ column, but that the donor will not pay for it?
Q8. What about unrealized gains and losses. Is there clear guidance about which balance sheet items should be revalued?
Watch the video below