Popular Post BBalls Posted June 15, 2011 Popular Post Report Share This is pretty clear "revalue the remaining foreign currency" "Diversify currency composition" & "remove exchange restrictions" Does it get any plainer!!!!! Revalue the remaining foreign currency denominated balance sheet items! COMPONENTS/RESTRUCTURING TO RV I have reviewed in some detail the requisite criteria for the restructuring and implementation of the Central government investment accounts under the PFM Public Financial management System as mandated by the MOF and coordinated with the IMF & World Bank. The process is somewhat skewed given that the plan methodology is integrated with the Iraq 2011 Budget which as we all know has fluctuated pro forma income and production projections with the contributory oil pricing variable. With these in mind, one should also bear in mind that the Iraq economic policy has experienced delays in their capital budget primarily due to the political uncertainties as noted in the IMF report (noted below). The key components of production increases, pricing and large investments in the oil infrastructure have reduced the 2011 budget deficit while allowing for an increase in more transparent government finance activities. This trend toward a surplus position in the following years is realistic and will put government finances on a sustainable footing to help rebuild the government’s financials. I believe that the revaluation we are looking for is more than clearly defined and outlined in the letter of intent to the IMF: “Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding” http://www.imf.org/external/np/loi/2011/irq/030311.pdf 1.We have worked with IMF staff to complete the review of exchange laws and regulations and are considering measures to remove the identified exchange restrictions on current international transactions. 2. In this regard, we formed a Bank Reconciliation Unit that comprises technical level staff from the banks, the CBI and the Ministry of Finance, and with the assistance of Ernst and Young (who were the agents of the Ministry of Finance in the external debt restructuring process) to: (i) deal with all legacy external liabilities taking into account the government’s actions in the context of Iraq’s external debt restructuring (ii) indentify and propose to write-off non-performing loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. 3. The CBI will follow the guidelines to diversify currency composition and establish an appropriate duration and credit risk profile, and build capacity for risk analysis. I encourage everyone to review this letter and contrast its content to the economic reality of revaluation as not just a pipe dream but a documented FACT as outlined. http://www.imf.org/external/np/loi/2011/irq/030311.pdf FOR THOSE WHO STILL DON'T UNDERSTAND http://help.sap.com/saphelp_erp60_sp/helpdata/en/91/5ac4402418742ae10000000a155106/content.htm 1 3 39 1 Quote Link to comment Share on other sites More sharing options...
k98nights Posted June 16, 2011 Report Share Pretty much says it... hang on tight!! RV is a must do!! SOON God willing!! 12 Quote Link to comment Share on other sites More sharing options...
dinarmamma Posted June 16, 2011 Report Share I'm staying optimistic that this is our month. GO RV!!!! 4 Quote Link to comment Share on other sites More sharing options...
k98nights Posted June 16, 2011 Report Share I'm gonna pin this one for the time being so everyone gets a chance to see it 8 Quote Link to comment Share on other sites More sharing options...
LaGrange Posted June 16, 2011 Report Share I like the supporting documents that help explain what I want to believe. 7 Quote Link to comment Share on other sites More sharing options...
k98nights Posted June 16, 2011 Report Share I like the supporting documents that help explain what I want to believe. Me too! lol 4 Quote Link to comment Share on other sites More sharing options...
RonSkilbeck Posted June 16, 2011 Report Share Thanks for the post! 1 Quote Link to comment Share on other sites More sharing options...
BOSTON69 Posted June 16, 2011 Report Share THANKS FOR THE REALITY CHECK! 1 Quote Link to comment Share on other sites More sharing options...
detroitjazzman Posted June 16, 2011 Report Share dont mean to sound like okie.......but Nuff Said! 3 Quote Link to comment Share on other sites More sharing options...
rocketman2010 Posted June 16, 2011 Report Share Can you dig it Justsan 1 Quote Link to comment Share on other sites More sharing options...
rsskelton Posted June 16, 2011 Report Share Very nice find. Thanks for posting. This is the kind of " first cup of coffee" in the morning news article that I love to read! 3 1 Quote Link to comment Share on other sites More sharing options...
OH_BROTHER Posted June 16, 2011 Report Share Great post!!! Thanks 1 Quote Link to comment Share on other sites More sharing options...
Kanga Posted June 16, 2011 Report Share (edited) I'm gonna pin this one for the time being so everyone gets a chance to see it Well done K98 and thanks to the original poster BBalls Edited June 16, 2011 by Kanga 1 Quote Link to comment Share on other sites More sharing options...
therentman Posted June 16, 2011 Report Share Great post. I don't think anyone can dispute the links. It's not if, but when and June would be a perfect month! GO RV!! 1 Quote Link to comment Share on other sites More sharing options...
SFlorida Posted June 16, 2011 Report Share BB..You finally put up an awesome post worth every key stroke. This is exactly the information we all need to know about. RV just around the corner, our time is coming very soon. Thank you for such great info.. 1 Quote Link to comment Share on other sites More sharing options...
Popular Post MrFnHappy Posted June 16, 2011 Popular Post Report Share Ummmm...... (ii) indentify and propose to write-off non-performing loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. Ok, JMO I see a loss in assets due to loans in default (non-performing loans). After moving these loans from the asset column to the liability column they will recalculate their assets (clean up the balance sheets). "revalue the remaining foreign currency denominated balance sheet items" You can revalue balance sheet accounts that are denominated in a foreign currency in accordance with SFAS 52 (U.S.). Revaluation reflects changes in conversion rates between the date of journal entry and the date of receipt/payment of the foreign currency amount. General ledger posts the change in converted balances against the unrealized gain/loss account. Again, an adjustment to the books, not the currency itself. I realize my views aren't the most popular on the forum (looks like my reputation has gone backwards ), and I'm sorry for being a downer, but I'm just callin' it the way I see it........but would love to be wrong! 22 4 Quote Link to comment Share on other sites More sharing options...
jmw Posted June 16, 2011 Report Share Ummmm...... (ii) indentify and propose to write-off non-performing loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items. Ok, JMO I see a loss in assets due to loans in default (non-performing loans). After moving these loans from the asset column to the liability column they will recalculate their assets (clean up the balance sheets). "revalue the remaining foreign currency denominated balance sheet items" I would agree....people seem to want to ream more into it than there is. Again, an adjustment to the books, not the currency itself. I realize my views aren't the most popular on the forum (looks like my reputation has gone backwards ), and I'm sorry for being a downer, but I'm just callin' it the way I see it........but would love to be wrong! 4 2 Quote Link to comment Share on other sites More sharing options...
MrFnHappy Posted June 16, 2011 Report Share (edited) LOL....see there's a "neg" already, although no post to go with it, or to dispute what I wrote. I know, it's because I'm raining on the "parade".....but guess what?.......it's my parade too, and it's likely I hold more dinar than most (for 7 LONG years come Aug.), but I can't base my speculations and expectations on what I believe are misconceptions. Edited June 16, 2011 by MrFnHappy 9 3 Quote Link to comment Share on other sites More sharing options...
rising dough Posted June 16, 2011 Report Share BBalls, Thanks for the indepth work you have done. I appreciate your input and time invested to bring us news like this. I appreciate all you and others do to keep us all up to date and informed. Sincerely, Don 1 Quote Link to comment Share on other sites More sharing options...
MovieMaker Posted June 16, 2011 Report Share BBalls, Thanks for sharing. MrHappy Also appreciate you as well. 3 1 Quote Link to comment Share on other sites More sharing options...
MrFnHappy Posted June 16, 2011 Report Share BBalls, Thanks for sharing. MrHappy Also appreciate you as well. Thnx MM....I want great things to happen, but I also have to keep it real for me 4 1 Quote Link to comment Share on other sites More sharing options...
RodandStaff Posted June 17, 2011 Report Share Pretty much says it... hang on tight!! RV is a must do!! SOON God willing!! Gonna need a roll of duct tape to hang on any tighter! 1 Quote Link to comment Share on other sites More sharing options...
Dalite Posted June 17, 2011 Report Share LOL....see there's a "neg" already, although no post to go with it, or to dispute what I wrote. I know, it's because I'm raining on the "parade".....but guess what?.......it's my parade too, and it's likely I hold more dinar than most (for 7 LONG years come Aug.), but I can't base my speculations and expectations on what I believe are misconceptions. Your assessment is supported by Scooter in both posts and chat. This article concerns getting the 2 largest banks in shape to do business in a growing economy. The write-off of bad loans and proper capitalization are required to provide a stable foundation. Still good news, and no need for negs. Some here seem to substitute negatives for lack of High School Diplomas. 11 2 Quote Link to comment Share on other sites More sharing options...
wishwell11 Posted June 18, 2011 Report Share Your assessment is supported by Scooter in both posts and chat. This article concerns getting the 2 largest banks in shape to do business in a growing economy. The write-off of bad loans and proper capitalization are required to provide a stable foundation. Still good news, and no need for negs. Some here seem to substitute negatives for lack of High School Diplomas. <Big Smile .............phew!!........ glad it was you and not me a big plus one for you> Things arn't always made out to what they seem. revalue the remaining foreign currency denominated balance sheet items. As noted earlier, some balance sheet accounts (primarily AR, AP, and cash) may be held in foreign currencies. The system maintains balances for these accounts at their historical rates. A true gain or loss is not realized on these amounts until they are disposed; that is, when cash is received for a receivable or when cash is paid for a payable. Likewise, gains or losses are not realized on cash accounts until they are closed or transferred to a base currency account. Therefore, the actual value of foreign currency accounts at the current exchange rate may be quite different from the value at the historical rate. To ensure that unrealized gains and losses are accurately represented on the balance sheet, you execute the Foreign Exchange Revaluation (25.13.9) every period prior to printing your statements. Foreign Exchange Revaluation (25.13.9) calculates the value of foreign currency amounts using the current exchange rate and creates unrealized gain/loss transactions. The transactions that are created will vary depending on whether the debit/credit entries for each transaction are in the same or different currencies. Above, we show the transactions that are created when the currencies are the same. If the debit/credit entries of the transaction to be revalued are in different currencies, the revaluation creates an adjusting entry for the Unrealized Exch Gain/Loss Acct in General ledger Control (25.24). After reviewing the revaluation transactions (and deleting any extraneous transactions), you post them. Revaluation transactions are type FX. Foreign Exchange Revaluation 2 ID: 3326-QAD2 | Version: 2 | Date: 1/4/08 6:14:54 AM Once you execute the revaluation for a specific date, you cannot rerun it. N O T E The revaluation function revalues all foreign currency accounts using the current exchange rate. If you hold fixed assets in foreign currencies, fixed asset accounts will also be revalued. Prior to posting, you must manually delete the revaluation transactions for fixed asset accounts (and any other accounts whose balances should be valued at the historical exchange rates) using GL Transaction Delete/Archive (36.23.2) or Standard Transaction Maintenance (25.13.1 http://resources2.know.qad.com/TG-Financials/g2/g10/3326-QAD2.pdf 2 Quote Link to comment Share on other sites More sharing options...
aliciadogz Posted June 18, 2011 Report Share I just found out that, people I was worrie about, most to help after RV,has a few thousand.They didn't even know it was about to revalue.I was so worrie about them,they are having medical issues,he lost his job and she can bearly pay the bills.They could lose there home.I'm so happy they the DINARS.There so happy I CALL TOLD ,THEM, ABOUT, WHAT, WAS GOING ON.I'M ALL SMILES.THANK GOD!!!! OH' BY THE WAY GREAT POST,THANKS!!!! Quote Link to comment Share on other sites More sharing options...
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