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How to Account for Foreign Currenc

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Foreign currency transaction is the term used to describe all operations conducted by businesses or individuals that are denominated in a currency other than a company's functional currency, or that of the banking office if the subject is an individual. More info. Live Rates. International Payments.How do you account for foreign currency transactions? Such foreign currency transactions must be recorded, on initial recognition in reporting currency, by applying the exchange rate between the foreign currency and the reporting currency to the foreign currency amount at the date of the transaction.