Currencies

Contracts

Contract currency = operating level currency.

Conversion into operating currency

Data of a BU with a different currency than the one of the related Entity are converted using so-called “historical rate” method, specific conversion method in functional currency, as described in IAS 21 and CRC 99-02 standards.

This method consists in “congeal” conversion of all non-monetary items (right-of-use asset and related depreciation), using the spot rate of the commencement date, and to convert monetary items (debt) using spot closing rate. Flows of the period (rental charges, debt reimbursement and financial charges) are converted using an average rate. Differences are booked in exchange result. There is no conversion reserve under this method.

eLease16 doesn’t achieve conversion into consolidation currency (so-called “closing rate” method that impacts reserves with conversion differences): we have considered that these calculations are made directly in your consolidation software.

Conversion rates

Applied in Accounting closures All contracts denominated in another currency than the one of the Entity are automatically converted into Entity’s currency using the official ECB, European Central Bank, daily quotation, applying the “historical rate” method.

eLease16 uploads these quotation rates via the API made available by the ECB Euro foreign exchange reference rates.

In the menu, you can have a look in exchange rates applied for a whole month by choosing

If your currency is not supported by the ECB, please, let us know by emailing us.