In the second case, the parent will report currency exchange
gains of CAD 5.00.
The parent company must therefore adjust the translated books of the subsidiary by a capital
gain of CAD 11.25.
The trading account balances on January 20 show that your interaction with customer 1 resulted in a foreign exchange
gain of CAD 5, whereas your interaction with customer 2 resulted in a foreign exchange loss of CAD 30.
We note that this capital
gain of CAD 11.25 is calculated based only on the initial capital of the subsidiary company.
Not exact matches
First Asset Global Momentum (
CAD hedged) Class ETF (TSX: FGM) The First Asset Global Momentum (
CAD hedged) Class ETF's investment objective is to seek to provide shareholders with long term capital appreciation, through investing the ETF's portfolio to
gain exposure to equity securities
of companies primarily from developed markets that exhibit strong price and earnings momentum characteristics.
I'm not super familiar with the taxation
of US stocks in non-registered accounts, but my understanding is that you'll pay capital
gains taxes based on the value
of the stock in
CAD at the time
of purchase / sale, as well as taxes on dividends.
To
gain from the probable uptrend in the exchange rate
of the USD /
CAD pair, a binary trader should consider purchasing a one touch call option contract that expires in the final week
of September.
The capital
gain only exists from the point
of view
of the parent company, whose reference currency is
CAD.
For example, on March 1, the two houses are valued at $ 240,000, and therefore the balance
of the trading account (converted to
CAD) is $ 20,000, corresponding to the unrealized
gain up to that day.
In other words, the balance y
of the exchange
gain account on any given day is exactly equal to the current value
of (USD 100 minus
CAD 120), expressed in Canadian dollars.
In this case, the realized
gain for House A would have been the total content
of the trading account for House A on May 1 (which would have been denominated in pure
CAD on that day).
So something went wrong: we
gained CAD 7 without any record
of it on the «equity» side
of the balance sheet.
Also, at the bottom
of the accounts chart window, the total expenses are accurately shown as
CAD 65, which is the difference
of CAD 72 in food expenses, and
CAD 7 in currency
gains.
Or
CAD has dropped 50 %
of its value so your investment is worth US$ 1900 = CA$ 1000 (still) and no taxable
gain?
Early in his career, Earl
gained significant insight into the concerns
of technology developers while working as a computer software systems analyst, designing control software for
CAD / CAM systems.
Fourteen years experience using a broad range
of CAD systems more than experience
gained via a degree, a diverse professional background encompassing an extensive range
of industries, that supports seamless transitions among projects and multiple software design protocols.