more-arw search

Q&A Forum

Does a withdrawal from a GBP-denominated cash account to a USD-denominated cash account (i.e., spot exchange) on the same entity trigger realized FX gain/loss?

Mackenna Rose's Profile
Mackenna Rose
Profile
Title: Accounting
Company: Banking
(Accounting at Banking) | Oct 26, 2016

Does a withdrawal from a GBP-denominated cash (asset) account that is exchanged for USD at spot and subsequently (i.e., upon exchange) deposited in a USD-denominated cash (asset) account, both accounts of which are on the same entity, trigger a realized FX gain or loss? If so, which rate (aside from the spot rate) should be applied to determine the FX gain or loss? Also, does it matter whether the original GBP deposit was conducted in GBP or USD? The entity's functional currency is USD.

391 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.