How to record unrealized FX revaluation of a foreign currency loan without changing the foreign currency balance?

1

Hello,

I am using Manager Desktop v26.6.17.

My company’s functional currency is USD, and we have a loan recorded under Special Accounts → Loans Payable in RUB.

At year-end, we need to recognize the unrealized foreign exchange gain/loss in accordance with IAS 21. The loan principal in RUB should remain unchanged, while only its carrying amount in the functional currency (USD) should be adjusted.

However, when I record a journal entry such as:

• Dr Loans Payable / Cr Foreign Exchange Gain, or
• Dr Foreign Exchange Loss / Cr Loans Payable,

Manager treats the entry as a partial repayment of the loan and changes the outstanding balance in RUB, instead of only revaluing it in USD.

I also noticed that my version does not have a Currency Revaluations tab; only the Realized Currency Gains and Losses report is available.

My question is:

How should unrealized foreign exchange revaluation of a foreign currency loan be recorded in Manager Desktop so that:

• the outstanding balance in RUB remains unchanged;
• only the USD carrying amount is adjusted;
• the unrealized FX gain/loss is recognized correctly?

Or is this functionality currently not supported in Manager?

2

Have you tried the exchange rate register? It under Settings. Just enter the exchange rate and all assets and liabilities will be revalued through the Gain/Loss account in Profit or Loss.