1065 Schedule L -Foreign Holding

[equinecpa]

I'm doing a cash basis 1065. The client has a foreign bank account. I used average exchange rate for the year to convert income and expenses. Is it OK at the end of the year to use the same rate or should I be using the 12/31 tax rate and booking a foreign exchange gain/loss? The dollars involved really are not material but I'd like to do it correctly.

Thanks

[equinecpa]

Anyone?

I found this: http://www.irs.gov/businesses/small/...130524,00.html but it doesn't really deal with gain/loss on foreign exchange.