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    Nurik0o0o's Avatar
    Nurik0o0o Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 20, 2008, 03:14 AM
    Foreign Currency Rollover. Forex Gain/Loss. Is it Realised or Unrealised?
    Hi...

    I am reporting my financials in USD...
    I've taken up a loan in EURO, let's say 100K in March when the rate was 1.51.
    The loan was due in April.
    But I've decided to rollover the loan until year end.
    In April, let's assume that the rate was 1.52.

    When the loan was rolled...
    How do I account for the foreign exchange loss?

    Do I treat it as a realised loss, or unrealised loss?

    Company has a year end in June...
    Loan not paid up at Financial Year End.

    Thank you for your help!
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Aug 27, 2008, 05:26 AM
    You should record the loss in the income statement for the month of April.

    Dr. Foreign exchange loss
    Cr. Loan
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