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Translation of Foreign Currencies to US Dollars

When foreign currencies are translated into US Dollars, where does the difference go? For example, is there a loss or gain? If so, is it recognized?

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When foreign currencies are translated into US Dollars, where does the difference go? For example, is there a loss or gain? If so, is it recognized?

When foreign currencies are translated into U.S. dollars, the difference becomes part of a regular journal entry. The gain or loss from the translation in currency is realized at the time of the currency translation settlement. The difference becomes a part of the net income (by a gain or loss) in the current period, at the time of settlement. An example journal entry that would be recorded when there is a difference in the translation would look like ...

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When foreign currencies are translated into US Dollars, where does the difference go? For example, is there a loss or gain? If so, is it recognized?

$2.19