The foreign exchange adjustment refers to the foreign exchange adjustment between foreign investment enterprises and related units under the supervision of the State Administration of Foreign Exchange.
The adjustment price shall be determined by both parties through negotiation.
According to the Supplementary Provisions on Accounting Treatment of Foreign Currency Business of Chinese-Foreign Equity Joint Ventures issued by the Ministry of Finance, when an equity joint venture sells foreign currencies at the adjustment price, the conversion difference due to the adjustment price being higher than the foreign currency book value shall be listed as the current period.
The scope of foreign exchange adjustment is: (1) the retention of foreign exchange;
(2) Foreign exchange owned by foreign-invested enterprises;
¢Û Foreign exchange donated by overseas Chinese, Hong Kong, Macao and United States compatriots;
(4) foreign banknotes held by individual residents;
(5) Other foreign exchange approved by the State Administration of Foreign Exchange.
