[Anonymous]

Hello – I’m having trouble keeping straight how to report all the different type of FX GL. i know there are many nuances in terms of when these gains are included in net income vs. oci/equity. does anybody have a breakdown? FX Spot, Forward FX as hedge (different types of hedges have diff types of treatment if i recall), forward FX as speculation, Fin. Statement Translation, Fin Statement remeasurement, etc.

[cpa1234]

I basically skipped over the hedge stuff and some other stuff about FX I felt overlapped with BEC information because I can't study it all you know lol. The following is the run-down of what I have in my study guide as far as FX is concerned. Some people might have more but I figured I'd post it for you.

FX Translation (functional currency used – G/L to OCI):
First – IS: all average rate
Second – BS: all spot rate except:
– Common Stock = historical; RE = Net Income from IS (after translation); AOCI = Plug to Balance

FX Re-Measurement (not functional currency used – G/L to NI):
First – BS:
– Monetary (Cash, AR, AP, LTD) = Spot
– Non-Monetary (PPE, AD, CS) = Historical
– Inventory = Average
Second – IS: all average rate except:
– Depreciation Expense = Historical
– NI = RE from Balance Sheet (after re-measurement) –> Plug a gain or loss to make Revenue – Expense = NI/RE

FX Transactions G/L also to NI

AUD - 83
BEC - 78
FAR - 76
REG - 79

BEC: 78 (May 2017)

FAR: 76 (Oct 2017)

AUD: 83 (April 2018)

REG: 79 (June 2018)

[Author]

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