Dear Colleagues,

I have a practical case regarding the subject for a not-for profit organization based in USA having operations in several African countries.Most of functional currencies of the field operations are their respective local currencies (Neither USD nor hyper Inflationary).Funds are advanced to these places from HQ periodically and will be converted to the functional currency for operational and regulatory reason. At the end of the year, Its field offices prepare financial statement on local currencies.The translation to reporting currency becomes difficult for those field office banks don’t have Ask price for USD, it doesn’t seem they have one,Specially those countries using African franc (XAF or XOF) Or getting bank buying rate for Euro is nothing to impossible.In this situation, what rate do you suggest to use to translate field office report (Balance sheet and Income Statement) to reporting currency i.e USD and Should the exchange rate gain or loss be a balancing figure?where do you suggest the gain or loss on exchange rate be classified & reported in the financial statement?

I would welcome your thoughts.

Best Regards

Aki