discount accretion and premium amortization

Broad Transactions1

1. 830-946Financial Services—Investment Companies830 Foreign Currency Matters

   This Subtopic tells investment companies how to compute and report foreign currency transaction gains and losses on foreign-currency-denominated securities, cash, forward contracts, receivables/payables, income, and expenses. Ongoing revaluation of unsettled foreign-currency items produces unrealized foreign currency gain or loss, which is reclassified to realized gain or loss upon settlement (830-946-45-1). Critically, a fund is permitted—but not required—to separately isolate the foreign currency component of realized and unrealized gains and losses on investments, and it must disclose whichever practice it follows (830-946-45-4; 830-946-50-1).