Unrealised FX Losses treatment

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BrianCon
Posts: 14
Joined: 02 Mar 2020, 16:07

Unrealised FX Losses treatment

Post by BrianCon »

Hi,

Preparing consolidated Mgmt Accounts in GB£ and one of the entities is in US$ so I re-translate the BS at the closing month end rate for the consolidated accounts.
Query I have is how do I treat FX arising on re-translation of the P&L reserves brought forward from last year. Are these exchange losses realised or un-realised and regardless, do they have to be posted to the P&L or retained on the Balance Sheet?

Cheers,

Brian
JRSB
Trusted Expert
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Joined: 01 Mar 2020, 01:10
Location: UK

Re: Unrealised FX Losses treatment

Post by JRSB »

P&L reserves brought forward are at their historic average rate for each year so aren't continually translated
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