Accounting of fx gain or loss on foreign bank balance
This query is : Resolved
28 April 2016
Hello everyone,
Please help me out
I have one Query; while accounting of Foreign exchange gain or loss on Foreign cash and cash equivalent what is the correct treatment
say at the end of the month I have $50 in my bank account and reporting currency is INR so whatever gain or loss arises according to exchange rate at the month end, whether it would be our realized gain or loss OR unrealized, as if it is realized gain or loss then we will not reverse it in next month , but if it is Unrealized then we will pass a reversal entry at the beginning of the month,
please let me know the correct treatment as in my company for some countries they are reversing it and for some they are not passing reversal entry.
Please help me out
I have one Query; while accounting of Foreign exchange gain or loss on Foreign cash and cash equivalent what is the correct treatment
say at the end of the month I have $50 in my bank account and reporting currency is INR so whatever gain or loss arises according to exchange rate at the month end, whether it would be our realized gain or loss OR unrealized, as if it is realized gain or loss then we will not reverse it in next month , but if it is Unrealized then we will pass a reversal entry at the beginning of the month,
please let me know the correct treatment as in my company for some countries they are reversing it and for some they are not passing reversal entry.
28 April 2016
It is unrealised gain or loss.
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28 April 2016
How? can you please clarify and provide reference of applicable IAS or Ind AS
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