Post by
Moneyday0 on Sep 04, 2015 7:06am
If MSL continues to lose $1 million or so on exchange
worth setting up subsidiary earning in euros and spending in euros. Exchange derivative is an accounting exercise unless monies brought back into Canada then converted. OR in times like this, put capital expenses into foreign areas and reduce profits to offset the artificial currency loss instead of repatriating the profits into CDN and losing all the monies. Again, it really is an artificial loss if monies kept in euros and in later years when closer to par transferred into CDN. There are lots of options to NOT really lose the mark to market booking transaction.
Comment by
peter75 on Sep 04, 2015 8:33am
That is untrue in this case, the constitution of Canada does not allow money to ne buried in foreign countries Further fx is either a tailwind or a headwind the market thrives on stocks that see for instance in USA funds but produce in canadien funds the gain goes to the bottom line it can go against you the other way as Msl earnings stated please don't mask the facts with your spin