Foreign currency trading gains and losses refer to the exchange gains and losses caused by the exchange rate difference between the trading day and the settlement day when an enterprise conducts economic business such as collection, collection, current settlement and pricing in currencies other than the bookkeeping base currency.
The gain and loss on translation of foreign currency statements refers to the conversion difference when financial statements prepared in foreign currency are converted into statements expressed in reporting currency (or bookkeeping base currency) according to the exchange rate and method selected for different purposes. Its content and nature are completely different from the gains and losses of foreign currency transactions.
Carry-over time of exchange gains and losses: According to the current domestic accounting system, foreign currency business must be accounted for at the end of the accounting period (month, quarter or year) and the corresponding accounting treatment must be carried out. Under normal circumstances, it should be handled once every quarter, but now the exchange rate changes rapidly, so if there are many foreign currency businesses, it is usually handled once a month.
The exchange rate on the first day of the first month of each month is the exchange rate used when making accounts in that month, and there will be a new exchange rate on the first day of next month. At this time, it is necessary to calculate the amount of foreign currency converted into RMB on the books according to the new exchange rate and adjust the book figures. The difference when adjusting figures is exchange gains and losses.
On the other hand, when foreign currency is exchanged with RMB, because the price adopted by the bank is inconsistent with the exchange rate on the book, the difference is the exchange gain and loss.