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?
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?
