METHODOLOGICAL AND PRACTICAL ASPECTS ON ACCOUNTING FOR FOREIGN CURRENCY ADVANCES

• Published in: Economica Vol. 2; no. 128; pp. 65 - 81
• Main Authors: Alexandru NEDERITA, Ludmila GRABAROVSCHI
• Format: Journal Article
• Language: English
• Published: Academy of the Economic Studies of Moldova 01.06.2024
• Subjects: accounts; advances paid; advances recei- ved; financial statements; foreign currency; foreign exchange differences
• ISSN: 1810-9136
• DOI: 10.53486/econ.2024.128.065

This Study addresses the methodological and practical aspects of accounting for operations that include the payment, receipt, use, repayment and settlement of foreign currency advances. Such aspects cover the classification methods for advances paid and received, for recognising and measuring the foreign exchange differences related to transactions that include foreign currency advances. In particular, the issues of accounting for such advances in compliance with the national and international accounting requirements are investigated. Likewise, the way of presenting the information on foreign currency advances in complete and abridged financial statements is reviewed, as well as the tax matters related to the operations with the mentioned advances. The authors have developed recommendations on how to modernise the accounting for advances paid and received in a foreign currency, which will ensure a higher level of financial information reliability, transparency and comparability at the national and international levels