Foreign Exchange Gain

Code: 4820
👁 Views: 119

Account Information

Financial Statement Income Statement
Normal Balance Credit

Definition

Gains arising from fluctuations in foreign currency exchange rates when converting or settling balances in a currency other than the company's functional currency.

Sub-accounts

4821

Realized Exchange Gain

4822

Unrealized Exchange Gain

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 21 Effects of Changes in Foreign Exchange Rates
US GAAP ASC 830 Foreign Currency Matters

❓ Frequently Asked Questions

Q: What is the difference between realized and unrealized foreign exchange gains?

A: Realized: result from actual currency conversion (e.g., selling dollars for cash). Unrealized: result from revaluing foreign currency monetary balances at period end.