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
Unrealized foreign exchange Gain/loss
Moderator: Mark T Serbinski CA CPA