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Recording Guidelines For Gold Transactions: 1. Gold Deposits Indicator General Ledger Amount
Recording Guidelines For Gold Transactions: 1. Gold Deposits Indicator General Ledger Amount
Recording Guidelines For Gold Transactions: 1. Gold Deposits Indicator General Ledger Amount
Based on international market’s average rates per ounce of gold every month
end. Gold is recorded in the Khmer Riel (“Riel”), which is the Central Bank’s
functional and presentation currency. Both revaluations for price changes
(changes in market price) and exchange rate changes (foreign exchange
translation) are recorded to an equity account. The gold bullion is comprised of
physical gold holding and gold receivables (gold certificates), and separated
accounts are used to record two forms of gold.
1. Gold Deposits
The gold price and exchange rate to be used in determining the amount
are the latest market price and exchange rate used for gold revaluation.
For example, the latest revaluation rates are 1 gold ounce = 1,100USD and
1USD = 4,000KHR for gold price and exchange rate respectively; so the
amount would be 4,400,000,000KHR when making a term deposit of
1,000 gold ounce (1,000 gold ounce x 1,100USD x 4,000KHR).
- Principle liquidation
The gold price and exchange rate to be used in determining the amount
are the latest market price and exchange rate used for gold revaluation.
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- Principle exercise
T. Code Indicator General Ledger Amount
EGC Dr. Physical gold holding In KHR
EGC Cr. Gold certificates In KHR
The gold price and exchange rate to be used in determining the amount are the
latest market price and exchange rate used for gold revaluation.
- Exercise cost
T. Code Indicator General Ledger Amount
EFC Dr. Fee charge In USD
EFC Cr. Nostro account In USD
Revaluation is done for changes in gold market price and changes in exchange
rate simultaneously and aggregately in order to record total unrealized
revaluation amount into the same equity account.
- Gold certificates
T. Code Indicator General Ledger Amount
RLC Dr. Unrealized revaluation G/L on gold certificates In KHR
RLC Cr. Gold certificates In KHR
6. Sales of gold
Before the recording of a gold sale, gold revaluation has to be done (refer to 6.
Monthly revaluation for gold) by using gold price and exchange rate at the sale
date. The following recording entries shall to be posted once the revaluation is
done.
- Physical gold holding
T. Code Indicator General Ledger Amount
SPG Dr. Nostro account In USD
SPG Cr. Physical gold holding In KHR
- Gold certificates
T. Code Indicator General Ledger Amount
SGC Dr. Nostro account In USD
SGC Cr. Gold certificates In KHR
FIFO method is used in order to determine the cost of gold sold. This
cost is compared to current value of gold in KHR at the date of sale.
GL Name GL Number
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