I am looking for the interpretation/relevant information on the amortization of foreign exchange losses. This is not the SIC 11. For example, Company A in Mexico needs to PREPAY its US$ debt, and there is losses in exchange rate needed to be booked in the statement. Now, Company A feels that if they book the whole losses amount in one year, that year operating performance would be very bad.. major losses. So Company A tries to amortise that losses into, say, 5 years resulting lower losses realised each year, and make the company's financial performance looks OK.

Would there be any clause, rules & regs, etc. On this matter in the sense of IAS?

Please explain to me like a 4-year old?

Drdevad