more-arw search

Q&A Forum

Are companies using bid or ask FX rates for financial reporting?

I was asked to established the foreign exchange rates for financial reporting for our company but am not sure if I should be using bid or ask price or whether I should include some interbank %.  I am using Oanda and the average rate calculator as well as the regular currency converter for month end.  Thank you!


Topic Expert
David OBrien
Title: Treasury Consultant
Company: EE Treasury
(Treasury Consultant, EE Treasury) |

Dear Finance Director:

As you are aware, the rate setting alternatives are:
**Balance Sheet…last day of the month
P&L, there are three options
**Last day of the month
(Easiest to manage
Congruent with Balance Sheet)
**An average rate of the daily spot rates
**Actual spot rate at which the P&L transactions are realized

Most of my clients use the currency mid-rate.



Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email [email protected] to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.