Under the All-current method unrealized gians/losses on non-monetary assets/liabilities are recognized. The material seems to discuss the difference between the All current and temporal on monetary vs non-monetary assets, however, I didn’t see anything on realized or unrealized gains/losses.
think as follows: 1. to use all-current method, you use current rate to all asset/liabilities, right? 2. take inventory as example, if 2009’s inventory price is 10, 2010 is 15, the difference of inventory is 5, right? 3. if you adjust your 2009 inventory to reflect a most updated market price, you will report a “gain” of 5 for those inventory purchased in 2009. otherwise if you don’t sell them, it is a “unrealized gain” 4. because you use all-current method, it is to make your “unrealized gain” realized since you use the lastest market price.
interesting…didn’t look at it that way
Very nice analysis coshair.