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FX control accounts in a multi currency ledger

How are they meant to work in a manual environment

I have been presented with a client who has a multi currency balance sheet.

There are FX control accounts (labelled 'Spot') on the balance sheet which on a currency level have balances, but on a GBP equivalant net off to nil.

There has been specific challenge on this account from management as to explain the balances (even though net off to nil at a GBP equivalant level). My experience of these accounts in financial services have been through automated banking systems which feed this account. But my understanding was that these are just control accounts which should net off to nil on a reporting currency level and only been used for inter-currency journals.

I would like to get some understanding as to whether the use of these accounts is limited to how I have described above - or am I missing something significant?

Thanks in advance!

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