wxs1986

Good example in the notes. Lets say a sub makes a sale on Dec. 25 2010 when ex rate is 1.50 for delivery on Jan. 15. On Dec. 30 parent company calculates financials when ex rate is 1.25. They would book an unrealized loss on that sale. If then when the sale settles on Jan. 15 the ex rate is back up to 1.75 they would then book a realized gain.