I have a USD account which only receives. The current balance of the account is 0 USD.
Let’s say it received 10,000 USD throughout the year and the last day of the year, I did a FX transfer from this account of 10,000 USD to 7571 GBP to a GBP bank account.
In theory, at the end of the year, my balance sheet should look like this:
- Asset * : 7571 GBP
- Liability * : 0 GBP
However, for some reason, in QuickFile, I come up with a liability of 315.55 USD. It seems this is because you look at the value of my 10,000 USD whenever it comes in the account, in GBP value the day it comes in the account.
So if I receive 10,000 USD at a higher GBP/USD rate than the rate of conversion when I send them to my GBP account, calculating this way will create the liability above.
In accounting term, I believe this is not correct though: you receive an asset which is US Dollars and the value of this asset changes every day, it cannot be valued at the market rate fixed that day.