Hubbell Policies

RE-MEASUREMENT OF FOREIGN CURRENCY TRANSACTIONS POLICY

English

Owner : Vice President, Controller

Last Review: 2014.11.03

FIN – 41

Department: Finance

POLICY This policy requires all entities to remeasure monetary account balances denominated in a currency other than the reporting entity’s Functional Currency using the Corporate Published Month End Exchange Rate. SCOPE This policy applies to all Hubbell business units. PURPOSE The objective is to ensure compliance with United States Generally Accepted Accounting Principles (GAAP) and ensure accounting and reporting for foreign currency exchange is applied consistency across all Hubbell business units. PROCEDURE At each balance sheet date, certain recorded balances in Monetary Accounts that are denominated in a currency other than the reporting entity's Functional Currency shall be re-measured to reflect the current Corporate Published Month End Exchange Rate. The increase or decrease as a result of this re-measurement is a foreign currency translation gain or loss that must be recorded in the income statement in HFM 3872, "Unrealized Gain/(Loss) on FX Reval"/SAP account 707198. SAP companies SAP companies should perform the re-measurement through use of SAP T-code F.05, "Foreign Currency Valuation". A

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