Final unrealized forex


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Hi,

Would the reversal of the unrealized forex be realized upon payment?

Say in FY20X7 I had a GBP1mil Debtor valued at 1.2USD which is the revalued to 1.3USD at the end of the year.

Do I have a 0.1mil unrealized gain which I reverse out in the beginning of the subsequent year.


Then, the debtor makes payments in FY20X8 when exchange rate is 1.1USD with a realized loss of 0.1mil and I am left with:


USD0.1mil realized loss

USD0.1mil unrealized loss (reversal of gain)


In the FY20X8 financial statements is it acceptable to record an unrealized loss on a zero balance foreign currency account since the payment has been made? Or should the unrealized loss be realized as well?
 
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kirby

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Unrealized loss must be realized when transaction is settled. So yes.
 

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