Answer: Yes, it will be reported in the current period.

## Explanation Under accounting standards (IFRS and US GAAP), foreign currency transactions are recorded at the spot exchange rate on the transaction date. At each balance sheet date, foreign currency monetary items (such as receivables and payables) must be revalued using the closing exchange rate. Key points: - Foreign currency monetary items are revalued at each balance sheet date - The resulting unrealized gains or losses are recognized in the income statement for the current period - This applies even if the settlement date falls in a subsequent accounting period - The rationale is that the economic effect of exchange rate changes occurs when the rates change, not when the transaction is settled Therefore, the unrealized gain or loss on a foreign currency transaction with settlement in a subsequent period **will be reported in the financial statements for the current period**.

Author: LeetQuiz Editorial Team