How to record realized FX gain on IC loan
Accounts for the currency gain realized upon the repayment of principal on an intercompany loan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 10,500.00 | - |
| Intercompany Loan Receivable | Asset | - | 10,000.00 |
| Realized FX Gain | Income | - | 500.00 |
💡 Accountant's Note
Records the increase in functional currency value of the loan principal received from an affiliate due to exchange rate fluctuations.
Practitioner & Systems Framework
💻 ERP Architecture
Use intercompany elimination modules to ensure FX gains on one side match the other side's loss.
⚠️ Audit Flags
Mismatched loan balances between parent and subsidiary ledgers.
📄 Required Documentation
Executed loan agreement and bank credit advice.
Automate this entry with the JEH Accounting Suite
Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.
No Subscriptions. Own your data.
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
Related Journal Entries
Discussion & Community Questions
Loading comments...