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Quickbooks consolidation of two entities using different currencies

Our primary business is in the US and we consolidate our financials into USD. We opened another branch in CAD and due to regulatory reasons, set it up as a separate entity. We have two separate Quickbooks files, one for our US operations in USD$ and one for our Canada operations in CAD$. We have an intercompany account that was set up so that the US company can "lend" money to the Canada company until they become profitable. We currently reconcile this intercompany account every month and take the difference (based completely on exchange rate differences) to OCI. We charge interest on the Intercompany account as well. Both the intercompany and Interest charged pieces are zeroed out in the consolidation process. My two questions are this: 1.) Is there a way to pull these QB files into one QB report and report both in USD$? I'm assuming we would need to enter a month end exchange rate and the average month exchange rate in order to convert these numbers, but is there a simple way to do this right from Quickbooks without messing around in Excel too much? 2.) What are the proper month-end accounting journal entries to account for exchange rate differences? I'm assuming that since we are not cashing out or paying off the intercompany balance that there are no realized gains/losses. But I'm unsure of if we can run the exchange rate differences through the OCI account or if we need to hit our Income Statement. Any help from the experts out there with experience with these multi-curency adjustments would be greatly appreciated.

Answers

fred patton
Title: cfo
Company: xyz
(cfo, xyz) |

QuickBooks Enterprise can handle multiple currency companies and can also consolidate multiple currency companies.

Anonymous
(consultant) |

I have two branches to çombine: one with a Euro trial balance (kept in Sage) and one with a manual nominal ledger and cashbooks in GBP. There is lending to fund one branch. I have put the two trial balances into excel . How do I deal with the interbranch asset and liability balances? Do i consolidate the branch just as if it were an actual subsidiary? I am a UK company reporting in GBP. can I produce my statutory accounts in Euro? We don't but is this permissable? Do I neeed HMRC approval?

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