ROS Inc. is located in Switzerland. ROS, whose currency is the Swiss franc SF is wholly owned by CRO Ltd a Canadian company with a functional and presentation currency of the Canadian dollar. ROS's functional currency is the SF The summarized balance sheet for ROS at December was as follows:
Monetary assets SF
Nonmonetary assets
total assets SF
Monetary liabilities SF
Nonmonetary liabilities
Shareholders equity
total liablities and equity SF
None of the nonmonetary assets or liabilities are reported at market value.
What is the exchange gain or loss in Canadian dollars for ROS on January if the exchange rate changes from SF C$ to SF C$ and this is the only event affecting ROS for that day?
a
Foreign exchange gain of $ which will be reflected in Other Comprehensive Income.
b
Foreign exchange loss of $ which will be reflected in Other Comprehensive Income.
c
Foreign exchange gain of $ which will be reflected in net income
