Exempt Edge implements foreign exchange rates in various areas of our operations to facilitate international transactions and financial reporting. There is both an automatic and a manual method of tracking exchange rates in our system.
To activate the FX Module in your system, contact your Client Success Manager. This feature has no associated fee.
Once the module has been enabled, users will see a new tab within the Admin Module titled 'Foreign Exchange Management'.
It is important to note the following regarding the use and application of these rates:
Foreign exchange rates are converted values between CAD and USD, ensuing accurate representation of transactions, assets, liabilities, revenues, and expenses.
The exchange rates employed are obtained from the Bank of Canada’s 'Valet Service' for specific transaction or financial reporting purposes. These rates may vary based on prevailing market conditions and may differ across different platforms or sources.
Foreign exchange rates are utilized in the following areas within our organization:
KYC Calculations
Financial statement preparation and reporting
Transaction Summaries
To use the Daily FX Rate, please ensure that the following toggle is turned on:
Please note: While every effort is made to use reliable exchange rates, fluctuations in currency values may impact the recorded financial figures. Variations in rates can affect reported revenues, expenses, assets, and liabilities, leading to potential gains or losses arising from foreign exchange fluctuations.
Exempt Edge utilizes exchange rates sourced from the Bank of Canada. However, the use of these foreign exchange rates carries inherent risks linked to currency volatility and market fluctuations. Despite our efforts to use precise and current rates, we cannot guarantee absolute accuracy or immunity from fluctuations impacting financial outcomes.
When enabled, this option uses the daily average exchange rates that are published once each business day by 16:30 ET for all exchange calculations. The corresponding values will be displayed in the table below.
To add an exchange rate manually, ensure the toggle is turned off and click the +Add button. Confirm the Base Currency/To Currency details in the drop-down menus, define the Exchange Value, set an Effective Date and then click 'Create'.
This will only update the currency for reporting and would not adjust any offering unit prices or CMV values for transactions. You may edit or delete any created rate by selecting 'Actions' on the line item:
It’s important to note that you will need to add the currency exchange rate and its inverse rate in order to track and display the correct values. For example, if the offering is in USD, then the USD to CAD rate and the CAD to USD rate for the specific date will need to be recorded.
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