When NM items are unrealized, the gain/losses are ignored, but when they are realized, will the gains/losses in IS result from the fact: Revenue uses Avg rate, but the NM asset are recorded in BS using historical rate? Thx
not sure about specific calculation My understanding is that non-monetary items are realized using historical rate and if they are sold, the gain or loss would be realized using average rate. Since in Temporal method, you would have to calculate foreign exchange gain or loss(which rebalance balance sheets), so it would cover the portion of assets foreign rate inbalance. my 2 cents