Foreign currency gain or loss income statement
On September 1, 20X1, the spot exchange rate was $.20 per franc. At December 31, 20X1, Cano's year-end, the spot rate was $.19, but the rate increased to $.22 by February 1, 20X2, when payment was received. How much should Cano report as foreign exchange gain or loss in its 20X2 income statement? Accounting For Foreign Currency Loss - Proformative May 15, 2014 · Gaurav, My understanding is that any Unrealized Fx gain or loss is on account of translation of Monetary Assets/Liabilities that are that are not in the functional currency impacts the Income statement hence it needs to be added back in the Cash Flow statement.