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HMRC internal manual

Corporate Finance Manual

HM Revenue & Customs
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Understanding corporate finance: foreign exchange: overview


Companies that have transactions involving a currency other than sterling, for example because they buy and sell goods and services outside the UK, or hold assets and liabilities in a foreign currency, may have foreign exchange (FOREX) differences to account for. This section of the Corporate Finance Manual explains the background to FOREX.

CFM12010 to CFM12040 explains the concept of exchange rates.

CFM12050 to CFM12100 explains how exchange rates are determined and the commercial factors that influence the rates.

CFM12120 to CFM12030 looks at ways companies try to minimise exchange movements.