Under U.S. GAAP, what is the proper treatment of unrealized foreign exchange gains?
A. They should be deferred on the Balance Sheet until cash is received.
B. The principle of conservatism requires that they should never be recognized.
C. They should not be recorded until cash is received and the exchange transaction is completed.
D. They should be recognized in income on the date the exchange rate changes.
Answer:D
Under U.S. GAAP, what is the proper treatment of unrealized foreign exchange gains?
A. They should be deferred on the Balance Sheet until cash is received. B. The principle of conservatism requires that they should never be recognized. C. They should not be recorded until cash is received and the exchange transaction is completed. D. They should be recognized in income on the date the exchange rate changes.