Issue with revaluation for Income Statement Accounts.

Hi All,

Could you please assist me with below query.

I happened to see that our client runs ‘Revaluation’ process every month for Income Statement Accounts along with ‘Balance Sheet’ items.

I know the revaluation is done for Balance sheet items because the open balances (Receivables account and Liability accounts) denominated in foreign currency will be cleared in future. So we do run revaluation process at month end for ‘Balance Sheet’ items to discover ‘Unrealized gain/lose due to currency rate fluctuations’. And this process creates journal entries and we do reverse them in subsequent next period.

But my concern is why my client does the revaluation every month for ‘Income Statement Accounts’ too?