[Tux]

Can gains and losses be considered “operating” vs. non-operating?

Becker says no – gains and losses are only non-operating.

Wiley says yes – gains and losses can be operating or non-operating. (Based on a MCQ in the online test bank).

Which is correct??

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[jeff]

Foreign Currency Translation adjustments…Income from Continuing Operations.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[LP2012yeah]

Foreign Currency Translation adjustments-shouldn't it an item of OCI but not I/S?

[jeff]

If it's a hedge, yes.

Otherwise, it's Income Statement.

Sounds like you could use some NINJA FAR Audio. HiYa!

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[jenuno01]

@Tux there are sooo many types of Gains and Losses…some are Operating, some are not… give us a little more context. I don't think Becker makes such a general statement as “gains and losses are only non-operating”.

As far as foreign currency stuff, this was my understanding: A TRANSACTION gain/loss goes on the income statement. A TRANSLATION of actual financial statements gain/loss goes in OCI? I could be wrong though.

Class of 2012

[jeff]

Correct – The transaction adjustments are I/S.

I assumed we were talking about a company's transactions being denominated in something other than the functional currency and the G/L treatment of those transactions due to the fluctuation of the currency.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Tux]

Thanks for your responses. Very helpful.

Yes, the Becker video lecture, pg. F1-14, Peter says that Revenues and Expenses are operating. Gains and losses are non-operating.

Then, I answered a Wiley MCQ that said gains and losses can be either operating or non-operating. So, I was confused.

I emailed Becker and they, initially, said that the information in the video was correct. So, I responded to Becker with the examples you guys provided (thanks). The second representative responded and agreed with the examples I had provided.

Kinda weird that the info was misleading on this, but at least I understand it now.

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[jeff]

While there is an exception or two – for EXAM purposes, you need to remember that generally speaking, G/L are from activities that are not central to the operations of the business.

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Author]

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