Exchange gain is the difference between foreign currencies with the same amount reported at different functional currency exchange rates. Simply put, it is the profit and loss of the company's foreign currency monetary items and non-monetary items when converted into local currency due to exchange rate changes. This part of the exchange difference is included in the current profit and loss as a financial expense, thus affecting the company's profits.

Because it is a loss, it belongs to the category of expenditure, so it debits financial expenses and increases liabilities (which can be understood as the need to pay more bookkeeping base currency, an unrealized loss).

Extended data:

Precautions:

1. When the bank handles the settlement, the receipt, payment notice and remittance receipt to the unit or individual shall be stamped with the bank transfer seal, and the bank shall collect the money from the unit or individual. The entrusted collection receipt and acceptance notice sent to the payer shall be stamped with the official seal of the bank.

2. The items recorded in the settlement voucher must conform to the provisions of these Measures. The settlement voucher may record other items other than those specified in these Measures, except as otherwise provided by the State and the People's Bank of China, and such items have no effect of payment and settlement.

3. According to the provisions of these Measures, if the account number of the remitter, payer and payee must be recorded on the settlement voucher, the account number must be consistent with the account name.

4. The settlement voucher issued by the bank for settlement must be issued on the next day at the latest, and the received settlement voucher must be paid to the payee recorded in the settlement voucher in time.

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