Forex gain or loss for interbank transfer - multicurrency

HarryT

I hold 2 multi-currency accounts (USD and SGD) and whenever I transfer funds from USD to SGD, Wave will automatically recognise a forex loss/gain depending on their link to xe.com (my business currency is SGD). In fact there shouldn't be any since this will be a same day transfer. Not to mention whenever I try to reverse the forex loss/gain, it will affect the USD bank balances. Is there anyway to make a transaction to effect the SGD reporting balance without affecting USD ? I would appreciate any help in this. Thanks

AlexL

Hey @HarryT . You are certainly correct on this. Wave shouldn't actually be calculating the gains/losses on same day transfer but this is a larger issue due to the complexities of forex that we're working on fixing.

To solve this, let the gain/loss accumulate, and then at the end of the year, journal it out of the gain or loss account. From here, you can move it into the unrealized gain (asset) account or unrealized loss (liability) account. This will get it out of the way so that it's not messing with your P&L, and you can then work with your accountant to determine exactly how to account for this in the tax filing.