Hi there !!
For L1 it was very clear that unrealized foreign currency translation gains and losses go the other comprehensive income, and now for L2 they say very clearly also that foreign currency translation gains and losses go the the income statement (wether they are realized or unrealized).
What I am missing? Thank you
It seems you are incorrect there somewhere. Unrealized gains and losses go through OCI indeed. Where did you see it stated that they go through P&L?
Unrealized G/L go through P/L always for core operations. Unrealized G/L go through OCI under some circumstances as net investments to foreign entity under Current rate method.
No he is right. I’m in the same section and the text says that unrealized G/L due to foreign currency methods is required by both usg and ifrs to be reports in the income statement, it just says it can differ what line you want to report it in. Non operating expenses or OCI.
Not OCI but rather the option of wether to classify them as nonoperating expense/ income or operating expense/income.
Really confusing with L1 info
Those G/L evidenced through P/L are financial part of Income statement. No matter if realized from core operations.
Hhmm… well I am just rewriting what the book says
Financial part of P/L is not part of EBIT (operating earnings). Thus, books are correct.