Month-End FX Revaluation: A Step-by-Step Guide for Cambodian Entities

The goal of revaluation

At each reporting date, monetary items in foreign currency must be retranslated into the functional currency using the closing rate. Non-monetary items measured at historical cost stay at the original rate.

A clean five-step process

1. Freeze the sub-ledgers — no more entries for the period.

1. List every account balance held in a foreign currency.

1. Pull the MEF closing rate for the reporting date.

1. Recalculate the functional-currency equivalent and post the difference to an FX revaluation account.

1. Reverse the revaluation on the first day of the next period if your policy is to revalue monthly.

Common mistakes

The most frequent error is revaluing non-monetary balances such as prepayments or inventory. Another is using the average rate for the month rather than the closing rate for balance-sheet items. Both distort the financial statements and can trigger audit adjustments.

How to Verify the MEF Rate for Your Filing

Whether you are posting a USD invoice, computing month-end FX revaluation, or preparing a customs declaration, the rule is the same: anchor your figure to the official MEF daily bulletin for the relevant valuation date. Use today's official MEF rate from the Cambodia Exchange dashboard for live work, or pick any past date to retrieve the exact rate that applied on that day. Archive the rate evidence (a screenshot or API response) alongside the supporting document — GDT auditors increasingly request the source for every FX translation.

For the full data-handling disclosure — including caching, timezone normalization to Indochina Time, and how weekend/holiday fallbacks work — see our data methodology. For binding tax or customs positions, cross-check against the MEF bulletin directly and consult a licensed Cambodian tax advisor.

Frequently Asked Questions

Which balances actually need to be revalued at month end?

Only monetary items denominated in a currency other than your functional currency — cash, bank balances, receivables, payables and FX-denominated loans. Non-monetary items measured at historical cost (inventory, fixed assets, prepayments) stay at the original rate.

What rate should I use for the revaluation?

Use the MEF closing rate for the last working day of the period. If month-end falls on a weekend, use the most recently published rate before the period close.

Do I reverse the revaluation next month?

Many Cambodian entities post the revaluation and then reverse it on the first day of the following period, so transactions in the new period are booked at fresh rates. Confirm the policy with your auditor before adopting it.

អត្ថបទនេះមានប្រយោជន៍មែនទេ? ចែករំលែកជាមួយក្រុមរបស់អ្នក ឬ ផ្ញើមតិមកយើង។