Losses from exchange gains and losses are debited and gains are credited. Exchange gains and losses are secondary subjects under financial expenses.

Exchange gains and losses, also known as exchange differences, are the result of exchange rate fluctuations. To put it simply, exchange gains and losses refer to the differences in the monetary amount of accounts due to the adoption of different exchange rates in the accounting process of various foreign currency businesses. When exchange gains are generated, bank deposits are usually debited and financial expenses are credited.

As for trading gains and losses, because it is generated with the emergence of foreign currency business, and foreign currency business usually corresponds to a certain currency exchange behavior, trading gains and losses will really happen, that is, the generation of trading gains and losses will eventually affect the cash inflow and outflow of enterprises. Therefore, trading gains and losses should be included in the income statement of the enterprise, which will affect the taxable income of the enterprise.

What are the influencing factors of exchange gains and losses?

(1) Exchange gains and losses arising from the transaction. In transactions denominated in foreign currencies, foreign exchange gains and losses arising from the recovery or repayment of creditor's rights and debts.

② Exchange gains and losses arising from exchange. At the end of the accounting period, in order to consolidate accounting statements or modify accounting records, the original foreign currency unit of measurement is converted into the functional currency unit of measurement. In the eyes of ordinary people, exchange gains and losses may not be serious, but in listed companies, careless exchange gains and losses will cause huge losses.

③ The impact of unrealized gains and losses on exchange gains and losses. Unrealized exchange gains and losses refer to the exchange gains and losses that have been generated in the account due to exchange rate changes, but have not yet been realized. If the exchange rate changes, this part of the exchange gains and losses will also change, and the relevant gains and losses have not yet been finalized.