Unrealized Exchange Gain or Loss

Unrealized exchange gains or losses occur when the base value of a company's accounts receivable assets (recorded at historical exchange rates) is different from the actual base value (recorded at current exchange rates).  To calculate the unrealized exchange gain or loss each period, prepare the Multiple Currency Accounts Receivable Trail Balance Report.  This report lists, for each currency, the currency amount and the calculated base amount.  The gain or loss is obtained by calculating the current base amount (using the current exchange rate) and subtracting it from the listed base amount.

If the General Ledger module is installed, account balances may be revalued within the General Ledger in order to calculate the unrealized exchange gain or loss for the period.