Gain or loss on the exchange of foreign currency is considered separately from the underlying transaction (e.g., the purchase or sale of goods).

Question

Quizplus · Accepted Answer

According to accounting standards, gain or loss on the exchange of foreign currency is considered separately from the underlying transaction, which could be the purchase or sale of goods or services. This is to ensure that the impact of currency fluctuations on the financial statements is reflected accurately and transparently.

Gain or Loss on the Exchange of Foreign Currency Is