Directive on Accounting Standards: GC 2601 Foreign Currency Translation

States the Government of Canada’s accounting policies for foreign currency translation.

Date modified: 2023-11-01

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This document is part of the Appendix A of the Directive on Accounting Standards.

Exchange gains and losses arising from foreign currency transactions subject to the scope exclusions in PS 2601.02(a), (b) and (d) shall be presented directly in the statement of operations.
For foreign currency transactions of the Government of Canada that are not subject to the scope exclusions in PS 2601.02(a), (b) and (d), the irrevocable election in PS 2601.19A to present exchange gains and losses directly in the statement of operations shall be applied. As this election applies without exceptions, documentation of the irrevocable election on an instrument-by-instrument basis is not required.
Any deviation from GC 2601.01-02 must be approved by the Comptroller General of Canada.
When the election in GC 2601.01 is made for a financial asset or financial liability in the fair value category, the exchange gain or loss component of the change in fair value is separated and recognized directly in the statement of operations.
Separate disclosure of the carrying value of foreign currency denominated financial assets and liabilities to which the election in GC 2601.01 applies is required by PS 3450.071A.
There is no requirement to separately disclose unrealized and realized exchange gains and losses in the financial statements.

Applies without additional policy choices or interpretation for Departmental Financial Statements.

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