I have a client using Multi-currencies (Euro to US Dollar). They receive dated invoices from multiple Danish vendors to be paid in Euros. The client calls a broker to buy the Euros and then the broker pays the vendors at the direction of my client. The broker gives the client a quote for what the Euros will cost at that time and then goes into their bank account to get paid in US Dollars. The question is, when recording the bill paid should they use the exchange rate in Euros as of the date of the invoice or the rate on the day that they purchased the Euros. Obviously this will have an impact on their gains and losses but it needs to accurately reflect the timing of the liability and income.

Thanks so much.