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Replying to:
nancy-barber-etr
Level 2

What is the logic behind unrealised FX gain/loss not being included in the TB and why the prior month's gain/loss is reversed out in the following month?

I don't quite understand the logic behind the unrealised FX gain/loss not being included on the TB - the closing AP/AR balances should be remeasured at the closing rate so by not including this adjustment the balances are presented incorrectly?
Also not following why the gain/loss is reversed out the following month - our 2022 gain/loss should go to retained earnings like all other P&L accounts as part of year end, so the Jan-23 position should start at 0?
Would appreciate any further information on this

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