Unrealized foreign exchange Gain/loss

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mikkyd
Posts: 7
Joined: Mon Mar 30, 2009 11:07 am

Unrealized foreign exchange Gain/loss

Post by mikkyd »

My Canadian company does all business in US$ (sales, purchases). I revalue my accounts at the end of the year using the exchange rate on 31st December to CAD. I would like to know that when we revaluate our foreign currency accounts ( Receivables, Payables, US$ account, US$ Line of Credit) at year end we get a Foreign exchange Gain/Loss which is called the UNREALIZED FOREIGN EXCHANGE GAIN/LOSS in Canadian Dollars

Is the above to be brought into Income Statement and clubbed with the realized exchange gian/loss. What about for tax purposes?? Is the unrealized foreign exchange gain/loss taxable???

Thanks for your help
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