exchange rate holding effects of the unrealized non-monetary gains are ignored… While unrealized/realized monetary and realized non-monetary not? Little confused here. What does this mean? thx.
did u mean… " While unrealized/realized monetary and realized non-monetary not? " ??
scratch that did u mean??? " While unrealized/realized monetary and realized monetary not? "
no, he had it right in his question. Think in temporal that only monetary assets make up exposure. Therefore unrealized AND realized monetary are not ignored. Anything realized is not ignored. Therefore, unrealized non-monetary gains are ignored.
Sorry. I will ask this question… Company ABC uses temporal on XYZ Bob will ignore the exchange rate holding effects of… answer. Unrealized non-monetary gains. Is it because it is not in the Income Statement?
Exchange rate exposures: …Temporal = Monetary assets less Monetary Liabilities …All-Current = Shareholders Equity Therefore under Temporal, non-monetary (i.e. fixed assets, inventory) unrealized gains / losses are ignored.
weird check schweser page 256 in the FSA book 1luv
Realized G/L on non-monetary assets however is recognized (although not explicitly) in COGS and depreciation expense.