CRA indicates that annual balance sheet translation adjustments to FX-denominated balances are not included in qualifying revenue for CEWS purposes

CRA indicated that the annual adjustments made on the balance sheet of an eligible entity in translating FX-denominated balances to the current FX spot rate are not included in “qualifying revenues” for CEWS purposes, whose definition “requires … an inflow of cash, receivables or other consideration.” However, this inflow requirement would be satisfied, for example, “if an entity realizes a foreign exchange gain on the collection of an account receivable that arose on the sale of goods.”

Neal Armstrong. Summary of 23 January 2022 TEI Roundtable, 2021-0913421C6 under s. 125.7(1) – qualifying revenue.