I'm looking for some very simple guidance on how to properly record Fx from month to month. (Yes, I've read FAS52.)
Scenarios (in all instances the reporting currency is USD at the consolidated level):
- USD Entity, with GBP and EUR bank accounts. We revalue the accounts to the equivalent USD amount based on EOM rates. Is this a current period P&L gain or loss, or an unrealized gain/loss carried in the balance sheet?
- Similarly on the USD books, we have A/R and A/P represented in foreign currencies. Should the entry to revalue the foreign denominated amounts be against the P&L, or to the balance sheet?
Historically, we've been adjusting through a balance sheet account titled "Unrealized Fx Gain/Loss" and P&L impact has been recorded when transactions settle.
