Consistent use of Bloomberg, Thomson Reuters or OANDA FX spot rates generally is acceptable to CRA

What exchange rate will CRA permit a taxpayer to use as the “relevant spot rate” as an alternative to the Bank of Canada daily exchange rate? CRA indicated that the rates quoted by Bloomberg L.P., Thomson Reuters Corporation and OANDA Corporation would be “generally acceptable” as satisfying its criteria of being widely available on an ongoing basis, verifiable, and market-recognized. If such rates are used for ITA purposes, they must be used consistently from year to year and also used in the taxpayer’s financial statements – and be “used in accordance with well-accepted business practice” (which might mean something more than simply recording and storing them properly).

There is no mention of being allowed to average the exchange rates – and there is also no explicit discussion of how to select rates if the Bloomberg machine is providing continuous quotes throughout the day (although the “consistently” and “well-accepted business practice” references would have some bearing.)

CRA also states that:

The Bank of Canada rate will still be required in respect of a taxpayer transitioning into or out of income tax reporting in its elected functional currency in accordance with subsections 261(7) or 261(12)….

Neal Armstrong. Summary of 27 April 2017 Internal T.I. 2017-0684831I7 under s. 261(1) – relevant spot rate.