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The USD (United States dollar) is the official currency of the United States of America. The United States dollar, or U.S. dollar, is made up of 100 cents. It is represented by the symbol $ or US$ to differentiate it from other dollar-based currencies.

Go to Bookkeeping then Transactions then select Bank transactions (Take me there), or go to Bank transactions (Take me there). From the For review tab, open the transaction details and select Add. In the currency fields, enter the foreign amount or the exchange rate your bank provides.

At the date a foreign currency transaction occurs, each asset, liability, revenue, expense, gain, or loss arising from the transaction is recorded in the functional currency of the recording entity using the exchange rate in effect at that date.

The foreign currency gain is recorded in the income section of the income statement.

Foreign Exchange Expense: Alternatively, the foreign exchange fee could be classified as a foreign exchange expense. This would typically be the case for businesses that have to make regular payments in foreign currencies, such as for import/export costs.

Record gains and losses on the translation of currencies. The gains and losses arising from foreign currency transactions that are recorded and translated at one rate and then result in transactions at a later date and different rate are recorded in the equity section of the balance sheet.

Key Takeaways The reporting currency is the currency in which a company will report its financial statements. A reporting currency must be one currency, which makes it easier to understand and follow financial documents.

The change in foreign currency translation is a component of accumulated other comprehensive income, presented in a company's consolidated statements of shareholders' equity and carried over to the consolidated balance sheet under shareholders' equity.

For US dollars, the symbol '$' is sufficient abbreviation, unless there is a mixture of dollar currencies in the text. For other dollar currencies, '$' should be prefixed with the country abbreviation. For all other currencies, write the figure first followed by the currency name, for example, '100 million yuan'.