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    Foreign exchange gains and losses reported

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    How are foreign exchange gains and losses reported? Why do companies hedge? Why would some companies choose not to hedge?

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    https://brainmass.com/business/international-finance/foreign-exchange-gains-losses-reported-330150

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    How are foreign exchange gains and losses reported? Why do companies hedge? Why would some companies choose not to hedge?

    Answer:

    Foreign exchange gains and losses are generally included in the income statement for the period in which the exchange rate of the particular investment changes. So it reported as an income item. According to the Generally Accepted Accounting Principle (GAAP), at each balance sheet date ...

    Solution Summary

    The expert determines how foreign exchange gains and losses are reported. Why companies hedge is determined. Two references are provided.

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