What is the logic behind unrealised FX gain/loss not being included in the TB and why the prior month's gain/loss is reversed out in the following month?

Hello Nancy-barber-etr, thanks for posting on the Community page, So in QuickBooks Online , unrealised gains or losses do not appear in the Trial Balance report because the Trial Balance report is designed to show the balances of accounts as of a specific date, and unrealized gains or losses are not realized until a transaction is completed. This means that the unrealised figure isn't an actual amount yet, but if the transaction(s) were completed (paid) now that is what the exchange gain/loss would be.  If you want to make adjustments on the balances, you would need to revalue the currency. You can also speak to an accountant who can guide you more on this too. 

Hi Ashleigh, thanks for coming back to me.
So it sounds like we perhaps aren't running the revaluations at month end? From your reply, it sounds like if we do the revaluations, that will mean that the closing, revalued balances for AP and AR will tie across both the balance sheet and TB reports?

Thanks

Nancy

Hello Nancy-barber-etr, so yes it should correct the balances of the AP/AR reports. You can also delete the journal entry for the revaluation if any case it doesn’t work. 

Hi Ashley

Please can I pick this up again - I have confirmed that we are performing all necessary revaluations at month end, it is just that the unrealised FX gain/loss account does not show up on the trial balance report.

I don't follow why this is the case - we use the trial balance for our statutory accounts but with that account excluded it means our profit and loss and balance sheet are misstated and do not tie to the P&L and Balance Sheet reports that we report each month.

I understand it is not yet realised but when we report our statutory accounts, we need to include this element as otherwise our foreign debtors/creditors are misstated and our P&L doesn't report any of the FX impact. It seems odd that the balance sheet & P&L reports don't reconcile to the TB report?
Is there a way to bring up the unrealised gain/loss account into the TB? This is also causing issues in b/f P&L reserves as there is a continuous difference between the balance sheet and TB.
Thanks
Nancy