Foreign currency remeasurement is a procedure that restates the value of payables, receivables, and cash balances posted in a foreign currency to the company currency at period end. The key day for FX remeasurement is the last day of the period or fiscal year. Items are valued using the exchange rate valid on the key date and compared to the amounts that were originally posted.

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It is usually done by any organisation with monetary assets or liabilities (cash, receivables, payables, debt, etc) in currencies other than its functional currency, which brings FX remeasurement risk. If they want to reduce the volatility introduced by FX remeasurement, treasurers carry out balance-sheet hedging programmes. This will partially offset the accounting impact of foreign currency volatility from changes in the exchange rate between the value date and the period end date.

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