The accounting treatment of forward foreign exchange contracts usually includes: income recognition method, accounting treatment method of enterprise income tax, inventory valuation method, accounting method of bad debt loss, depreciation method of fixed assets, preparation of consolidated accounting statements, accounting treatment method of foreign currency conversion, etc. Different processing methods will affect the consistency and comparability of accounting data, and then affect the use of accounting data.

Note: Forward foreign exchange contract, also known as forward foreign exchange transaction, refers to a foreign exchange transaction in which the buyer and the seller sign a contract first, stipulating the amount of foreign exchange to be bought and sold, the exchange rate and the time for future delivery of foreign exchange, and then both parties handle the receipt and payment according to the contract on the specified delivery date.

Extended data:

Characteristics of forward foreign exchange contracts:

1, the trading place of foreign exchange forward contracts is not fixed, usually through modern communication means, and the trading time is not limited, so it can be traded 24 hours a day, so it belongs to the intangible market.

2. Foreign exchange forward contract is an agreement reached by both parties through negotiation, which can flexibly meet their preferences in transaction currency, exchange rate, delivery method and amount, so it is a non-standardized contract.

3. Both parties to a foreign exchange forward contract should bear the credit risk.

Baidu Encyclopedia-Forward Foreign Exchange Contract

Baidu Encyclopedia-Accounting Treatment Method