# Period-end FX revaluation > How AccountFUN keeps your foreign-currency accounts at today's exchange rate on every report — automatically and live, in plain English with worked examples. Source: https://www.accountfun.com/docs/guides/fx-revaluation/ If your business holds money in a foreign currency (a EUR bank account on USD/HKD books, a USD loan, etc.), its value in your **home currency** drifts every day as exchange rates move. AccountFUN tracks that drift automatically: every monetary foreign-currency account is revalued to the *current* exchange rate on your reports, and the difference is shown as an unrealized FX gain or loss across two accounts: **860 Unrealized FX Gain/Loss** (for outstanding invoices/bills — AR/AP) and **870 Bank Revaluation Gain/Loss** (for held monetary balances like bank, cash, and loan accounts). You don’t run anything — it’s always live. This guide explains what’s happening behind those numbers and when they matter. For the underlying concepts (realized vs. unrealized FX), see [FX gains & losses](https://www.accountfun.com/docs/concepts/fx-gains-and-losses/). ## The one-paragraph version You have a EUR bank account, but your books are in HKD. When you record each transaction you write down an HKD value using *that day’s* rate. Rates change daily, so AccountFUN revalues the account to today’s rate on every report, so the balance sheet always shows what those accounts are *actually* worth today. The difference is shown as an FX gain or loss. ## A simple example On **Jan 1** you deposit **€1,000** into your EUR account. The rate that day is **1 EUR = 8.5 HKD**, so your books record: ```text EUR bank account: €1,000 → HKD 8,500 ``` By **Mar 31** the euro has weakened to **1 EUR = 8.0 HKD**. Your €1,000 is now worth only **HKD 8,000**. Without revaluation, your balance sheet would still claim you hold HKD 8,500 — a HKD 500 overstatement. The live revaluation corrects it on every report: ```text EUR bank account: HKD 8,500 → HKD 8,000 (shown at today's closing rate) Unrealized FX loss: HKD −500 (the drop, shown in P&L) ``` The euros in the bank haven’t changed — only their HKD “translation.” If the rate had *risen* to 9.0, you’d see a HKD 500 **gain** instead. ## Where to see it Because unrealized FX is live, the same revalued figures appear across your reports — there is no separate step to run: | Place | What you see | | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Balance Sheet** | Foreign-currency monetary accounts (banks, loans, AR, AP) shown at the closing rate, with the FX folded into current-year earnings so the sheet always balances | | **Profit & Loss** | Two lines under Other Income: **860 Unrealized FX Gain/Loss** (AR/AP) and **870 Bank Revaluation Gain/Loss** (bank/cash/loan) | | **Trial Balance** | Monetary foreign-currency accounts at their revalued (closing-rate) balance | | **[Realized / Unrealized FX (AR/AP)](https://app.accountfun.com/reports/fx-gains-losses)** + **[Bank Revaluation](https://app.accountfun.com/reports/bank-revaluation)** reports | The detailed views: per-document (outstanding invoice/bill) and per-account (bank/cash/loan) FX exposure, with the rates used | The **Bank Revaluation** report is the best place to *review* your held-balance exposure at any date, and the **Realized / Unrealized FX (AR/AP)** report does the same for outstanding invoices/bills. Both support historical queries too, so you can see what your FX position was at a past year-end. Nothing happens to the foreign currency Revaluation only changes the **home-currency (base)** value shown on your reports. The actual euros, dollars, etc. in the real bank account are untouched — the “native balance” never moves. ## How it works behind the scenes * **It’s a live calculation.** AccountFUN takes each monetary foreign-currency account’s native balance, multiplies it by the closing exchange rate for the report’s date, and shows that revalued figure. * **It uses the period-end (end-of-day) rate.** The same end-of-day rate your reports use everywhere. It never uses a live or intraday rate. * **It’s always current.** Because it’s recomputed live, there’s nothing to re-run and no old adjustments to accumulate. Open a report for any date and you see the truthful value for that date. * **Only monetary foreign-currency accounts are revalued.** Home-currency accounts don’t drift, and non-monetary items (fixed assets, inventory) are carried at historical cost, per IAS 21. See [Multi-currency](https://www.accountfun.com/docs/guides/multi-currency/) for the monetary/non-monetary classification. ## When it matters most Run your reports at **period-end** — month-end, quarter-end, and especially **year-end** — to see your true position. Because the revaluation is live, your Balance Sheet, P\&L, and Trial Balance are always period-end ready; the [Realized / Unrealized FX (AR/AP)](https://app.accountfun.com/reports/fx-gains-losses) and [Bank Revaluation](https://app.accountfun.com/reports/bank-revaluation) reports are there so you can review the detail deliberately, especially before closing a period. ## Frequently asked questions **Do I need to do this for my home-currency accounts?** No. Only accounts in a *foreign* currency (relative to your org’s base currency) drift. HKD accounts on HKD books always show their true value. **The bank-account transaction tab shows a different number than the Balance Sheet.** The reports (Balance Sheet, P\&L, Trial Balance) revalue automatically at the closing rate — they show the truthful value live. The bank-account *transaction tab* shows each transaction at the rate it was originally recorded (the correct historical treatment). The difference between the two is exactly the unrealized FX the report adds. **I clicked Accounts Receivable (or Payable) on the Balance Sheet and the transaction listing shows a different total.** This is expected and is the same effect as above. AR and AP are *monetary* accounts, so the Balance Sheet revalues their outstanding foreign-currency portion to the closing rate — a **★** next to the figure flags the FX component. The transaction listing you drill into shows each invoice or bill at the rate it was *originally posted*, which is the correct historical record. The gap between the two numbers is exactly the unrealized FX the Balance Sheet has added on your outstanding foreign-currency documents. Open the **Realized / Unrealized FX (AR/AP)** report for the same as-of date to see the per-document breakdown that makes up the difference; the **Bank Revaluation** report does the same for held bank, cash, and loan balances. **I see “closing rate unavailable” on an account.** That means AccountFUN couldn’t find an exchange rate for that currency on the report’s date. The account is shown un-revalued (no wrong number is presented). Add the rate on the [Currencies & exchange rates](https://www.accountfun.com/docs/guides/currencies/) page and re-open the report. ## Where to next * **[FX gains & losses](https://www.accountfun.com/docs/concepts/fx-gains-and-losses/)** — the realized vs. unrealized concepts behind this, with full worked examples. * **[Multi-currency](https://www.accountfun.com/docs/guides/multi-currency/)** — setting up foreign-currency accounts and the monetary/non-monetary classification that drives which accounts get revalued. * **[Currencies & exchange rates](https://www.accountfun.com/docs/guides/currencies/)** — where the closing rates come from, and how to add or override a rate. * **[Reports](https://www.accountfun.com/docs/guides/reports/)** — the Balance Sheet, P\&L, and Unrealized FX reports where the live revaluation surfaces.