Foreign-exchange notes on intercompany balances

HKD books with USD or RMB intercompany balances create differences that are not always “real” disputes. Some are translation; some are unsettled invoices.

Separate the questions

1. Does the counterpart agree the foreign-currency amount?
2. Has each entity translated that amount into HKD with a documented rate source?
3. Has settlement occurred, and on which date was the gain or loss booked?

Rate sources

Groups that pick rates from different bank screens on the same day invent differences of a few hundred or thousand dollars that consume close time. Agree a rate source in the accounting policy and attach the screen or circular used at month-end.

In audit fieldwork

We compare foreign-currency notional amounts first. Only after both sides agree the USD or RMB figure do we examine HKD translations. Findings distinguish unsettled invoices from translation policy gaps so your team knows which fix is needed.