Bridge currency and Reconciliation: Difference between pages

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''Foreign exchange transactions.''
1. ''Cash management and accounting''.


A bridge currency is a currency that is used as an intermediate step in an exchange
A reconciliation is any quantified explanation of the differences between two related amounts.
between two currencies for which:


*There is no foreign exchange rate readily available; or
Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.
*The foreign exchange rate is unfavourable.




The United States dollar (USD) is often used as a bridge currency.
A very important example is the reconciliation of bank statement balances with the amounts in the customer organisation's internal records.
 
 
Another common accounting example is the reconciliation of reported operating profit to net operating cash flows. 
 
This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period. 
 
Each item contributing to the net difference is quantified within the reconciliation statement.
 
 
Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.
 
 
 
2.
 
An example of a reconciliation is a quantified explanation of the ''change'' in any balance, over a time period.
 
 
''Sometimes abbreviated to 'rec'.''




== See also ==
== See also ==
* [[Base currency]]
* [[Accounting records]]
* [[Cross currency deal]]
* [[Bank reconciliation]]
* [[Cross rates]]
* [[Cash flow]]
* [[Currency]]
* [[Cash management]]
* [[Dollar]]
* [[Cash reconciliation]]
* [[Fixed currency]]
* [[Conciliation]]
* [[Foreign currency]]
* [[Full reconciliation]]
* [[Foreign currency exchange rate]]
* [[Profit]]
* [[Foreign exchange]]
* [[Tax reconciliation]]
* [[Quoted currency]]
* [[Variance analysis]]
* [[Reference currency]]
* [[Reserve currency]]
* [[Terms currency]]
* [[Transaction]]
* [[Underlying currency]]
* [[USD]]
* [[Variable currency]]


[[Category:The_business_context]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 11:48, 3 May 2022

1. Cash management and accounting.

A reconciliation is any quantified explanation of the differences between two related amounts.

Reconciliation checks are an important feature of internal control systems, to provide additional assurance about the completeness and accuracy of recording financial and other information.


A very important example is the reconciliation of bank statement balances with the amounts in the customer organisation's internal records.


Another common accounting example is the reconciliation of reported operating profit to net operating cash flows.

This statement explains why the figure for accounting profit differs from the net operating cash flows for the same period.

Each item contributing to the net difference is quantified within the reconciliation statement.


Another example is the comparison of a physical count of stock or other assets, compared with the amounts in financial or other records.


2.

An example of a reconciliation is a quantified explanation of the change in any balance, over a time period.


Sometimes abbreviated to 'rec'.


See also