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Exchange rates and inflation on spend-based numbers

Spend-based factors are published in a currency and for a year. When your spend is in a different currency or a different year, Avarni converts it before...

Written by Misha Cajic

Spend-based factors are published in a currency and for a year. When your spend is in a different currency or a different year, Avarni converts it before applying the factor.

Two settings control this, and both are set once for your organisation.

Exchange rates

Settings › Exchange Rates.

Choose the source Avarni uses to convert currencies:

  • Reserve Bank of Australia

  • Federal Reserve

  • International Monetary Fund

All three publish monthly. Conversion uses the rate for the activity date, not today's rate.

Pick the one that matches how your finance team converts, so your emissions and your accounts move together.

Inflation

Settings › Inflation.

A spend-based factor is published for a particular year. Spending a hundred dollars in 2026 buys less than it did in 2019, so applying a 2019 factor to 2026 spend without adjustment overstates your emissions.

Choose a source:

  • No Inflation

  • World Bank Inflation Database

  • Composite Inflation Database, combining World Bank, Australian, United States and United Kingdom sources

  • ONS United Kingdom Inflation Database

You also choose whether the inflation rate follows the activity country or the factor country. Activity country is usually right: your spend inflated at your own economy's rate.

Selecting No Inflation means no adjustment is applied. If you do that, record it, because your assurer will ask.

Changing a source only affects new data

This is the part to be careful about.

Changing either source affects only data imported after the change. Existing emissions are not recalculated.

So an organisation that changes source mid-year has two bases in one reporting period, with nothing on screen to show which row used which.

If you need to change a source, do it before you load a year, not during. If you have already loaded data, talk to your Avarni lead about reloading it.

Who can change it

Admins only.

What happens to a currency Avarni cannot convert

The amount is used unchanged rather than failing. That means a conversion Avarni could not perform looks like a successful one.

If you trade in an unusual currency, check a few rows after your first import.

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