At March 31, 2014, there were three legal exchange mechanisms administered by the Venezuelan government.
At March 31, 2014, there were three legal exchange mechanisms administered by the Venezuelan government, each with a different exchange rate: the fixed official CENCOEX rate, the variable auction-like SICAD1 rate, and the variable transaction-based SICAD2 rate.
The recent introduction of the variable SICAD1 and SICAD2 mechanisms requires reporting entities to exercise considerable judgment to determine which rate to utilize to remeasure their bolivar denominated monetary assets and liabilities, and to record associated revenues and expenses. There will likely be significant diversity among reporting entities in the March 31, 2014 financial reporting cycle.
It remains imperative that reporting entities provide robust footnote disclosure regarding their operations in Venezuela.