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Forex Gains (losses)

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  • Forex Gains (losses)

    Hello,

    I understand that if, say, a US company with functional currency of USD and issues debt denominated in a foreign currency then each quarter the company will need to adjust the debt with foreign currency exchange gains (losses) on the balance sheet and income statement. Now, I am curious if the same company issues equity denominated in a foreign currency, then does the company still need to make the same foreign currency exchange adjustment to the issued equity with currency exchange gains (losses)?

    Please help.

    I didn't find the right solution from the Internet.

    References:-
    http://www.wallst-training.com/wstfo...1b06d6ecefd642
    Auto Loan Marketing Example

    Thanks
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