foreign Exchange loss will be charged in P&l A/c
When the cash in the bank account is sold at a currency other than its denomination.
It's a foreign exchange gain or loss, so when you exchange currencies, you can either make a gain or a loss from it (profit or loss).
If it's a fixed asset, it's treated as a gain. The amount of gain is booked in the "Gain on Sale of Assets" revenue account (or something similar). The typical entry would be: Debit Cash (or Accounts Receivable) Credit Fixed Assets (or whatever account held the asset you're selling) Debit Accumulated Depreciation (if your asset had any A/D) Credit Gain on Sale If you're talking about selling inventory, that's a different matter.
Realized exchange gain is when a company is selling to a customer who has a different type of currency. When the customer is invoiced at one exchange rate, but in the process, the rate changes and the invoice is paid by a new rate, which benefits the company, they achieve a realized exchange gain.
An exchange gain is when a company buys something one day at one rate of currency but then actually pays for what they bought a different day and the rate of currency is different and higher will cause an exchange gain. An exchange loss is when the rate of currency is lower when company actually pays for item and enters it in the books.
It's a foreign exchange gain or loss, so when you exchange currencies, you can either make a gain or a loss from it (profit or loss).
When the cash in the bank account is sold at a currency other than its denomination.
Most patients gain weight after surgery.
If it's a fixed asset, it's treated as a gain. The amount of gain is booked in the "Gain on Sale of Assets" revenue account (or something similar). The typical entry would be: Debit Cash (or Accounts Receivable) Credit Fixed Assets (or whatever account held the asset you're selling) Debit Accumulated Depreciation (if your asset had any A/D) Credit Gain on Sale If you're talking about selling inventory, that's a different matter.
I believe that we gain and exchange information every day even when we do not realize that we are.
Realized exchange gain is when a company is selling to a customer who has a different type of currency. When the customer is invoiced at one exchange rate, but in the process, the rate changes and the invoice is paid by a new rate, which benefits the company, they achieve a realized exchange gain.
Unrealised foreign exchange gain and loss is moved through equity while realised gain and loss is charged to profit and loss.
An exchange gain is when a company buys something one day at one rate of currency but then actually pays for what they bought a different day and the rate of currency is different and higher will cause an exchange gain. An exchange loss is when the rate of currency is lower when company actually pays for item and enters it in the books.
Simply, to gain profit.
It is an unrealized gain / loss. It is a restatement of the value of a balance in a certain currency, in relation to the base currency of the balance. Realized gains / losses are for 'finalized' transactions, such as outstanding vendor amounts paid or customer amounts received and there is a loss or gain realized at that point. (this happens when there is a big fluctuation between the date the transaction is executed and the date the money changes hands)
other comprehensive income
An appreciation in a foreign currency creates a foreign exchange gain when the foreign currency is to be received. A decrease in the value of foreign currency creates a foreign exchange gain when the foreign currency is to be paid. (Hoyle, Schaefer, Doupnik, 2009, pp. 328)