Gains and losses from fluctuations in exchange rates on transactions carried out in a foreign currency are reported in:

Question

Quizplus · Accepted Answer

Gains and losses from fluctuations in exchange rates on transactions carried out in a foreign currency are reported in the income statement. This is because they are considered revenues or expenses of the company and thus affect the net income for the period. The balance sheet, statement of retained earnings, and footnotes may provide additional information on these gains and losses, but the income statement is where they are recognized as a component of income.

Gains and Losses from Fluctuations in Exchange Rates on Transactions