answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Can recognised gain exceed realized gain?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Accounting

What is realized exchange gain?

Realized exchange gain is when a company is selling to a customer who has a different type of currency. When the customer is invoiced at one exchange rate, but in the process, the rate changes and the invoice is paid by a new rate, which benefits the company, they achieve a realized exchange gain.


Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis at the date of disposition?

Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis at the date of dispositionAnswer: TrueRealized gain or loss is the difference between the amount realized and the property's adjusted basis.


When does an unrealized foreign exchange gain or loss become a realized gain with respect to the foreign currency bank accounts?

When the cash in the bank account is sold at a currency other than its denomination.


How do you audit realised or unrealised foreign exchange?

Foreign exchange gain or loss is audited as unrealized income on the balance sheet when it occurs. This gain or loss then becomes realized income once it is paid or settled.


Why are unrealized capital gains or losses included in the calculation of returns?

The investor must consider the unrealized capital gain (or loss) as part of his/ her total return. The fact of matter is that if the investor so wanted, he she could sold the securities and realized the capital gain (or loss).

Related questions

What is realized exchange gain?

Realized exchange gain is when a company is selling to a customer who has a different type of currency. When the customer is invoiced at one exchange rate, but in the process, the rate changes and the invoice is paid by a new rate, which benefits the company, they achieve a realized exchange gain.


Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis at the date of disposition?

Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property's adjusted basis at the date of dispositionAnswer: TrueRealized gain or loss is the difference between the amount realized and the property's adjusted basis.


When does bone loss start to occur?

when does bone loss exceed bone gain


What technology was necessary in order for the glider to be functional?

It had to be recognised how airflow helped a wing gain lift


What was the motivation the confederacy had in winning the civil war?

To gain its independence, as recognised by Congress in Washington, as well as other foreign governments.


Is it realized or unrealized gain or loss while revaluation on cash balance in foreign currency according exchange rate?

It is an unrealized gain / loss. It is a restatement of the value of a balance in a certain currency, in relation to the base currency of the balance. Realized gains / losses are for 'finalized' transactions, such as outstanding vendor amounts paid or customer amounts received and there is a loss or gain realized at that point. (this happens when there is a big fluctuation between the date the transaction is executed and the date the money changes hands)


Which do you report on tax forms realized capital gain or unrealized capital gain?

You will report the sale of a capital asset on your 1040 tax form either the schedule D or the schedule 4797 and you will either have a gain or a loss on each transaction that you have to report on the schedules. You are not allowed to claim a loss on the sale of a personal asset but any gain on the sale of a personal asset is taxable income on your 1040 income tax return. You can call them what ever you want. When you read the tax form instructions they do not say realized capital gain or unrealized capital gain.


Does section 291 recapture 20 percent of the lesser of depreciation taken or the realized gain as ordinary income?

yes


When does an unrealized foreign exchange gain or loss become a realized gain with respect to the foreign currency bank accounts?

When the cash in the bank account is sold at a currency other than its denomination.


From the Trade date to the Settlement date what is the Realized Gain or Loss?

The Mark-To-Market gain or loss from trade date to settlement date will reflect any move in the currency's value over the period.


How do you audit realised or unrealised foreign exchange?

Foreign exchange gain or loss is audited as unrealized income on the balance sheet when it occurs. This gain or loss then becomes realized income once it is paid or settled.


What is a realized capital gain?

A capital gain is an increase in the value of invested money eg the rise in the value of shares, the increase in value of land or property, the increase in value of a work of art, etc In the UK capital gain is taxable by the iniquitous Capital Gains Tax. The gain is only realised when the investment is sold. Tax can then be computed on the gain.