A negative number means a gain.
For example:
1. The financial account is converted into foreign currency (USD) at the market exchange rate at the end of last month. At the end of last month, the exchange rate of US dollar against RMB was 7, and the US dollar deposit at the end of this month was 654.38+10,000 yuan.
2. USD deposit is 654.38 million yuan, and the functional currency reflected in the account is RMB 700,000 yuan.
Suppose the exchange rate at the end of this month is 8, that is to say, if the US dollar deposit is converted into RMB, it will be 800,000 RMB.
4. The account is 700,000, the actual account is 800,000, and the surplus is 6.5438+10,000, which will lead to negative exchange gains and losses.
5. The conclusion is that when the functional currency depreciates (the exchange rate rises), the exchange gains and losses of bank deposits (foreign currency accounts) and accounts receivable (foreign currency accounts) are negative. Accounts payable (foreign currency accounts) are just the opposite.
Extended data:
Exchange rate impact:
1, the exchange rate is the price and exchange ratio between two different currencies, and it is also the price expressed by one country's monetary unit in another country's monetary unit. Bookkeeping exchange rate is the exchange rate used to record foreign currency business. Exchange rate changes will generate exchange gains and losses. The type of bookkeeping exchange rate and the time of bookkeeping exchange rate are different. Will have an impact on exchange gains and losses.
2. Document No.05, No.94, issued by the Ministry of Finance, "Provisions on Accounting Treatment of Foreign Currency Business of Enterprises after the Reform of Foreign Exchange Management System" confirms that the bookkeeping exchange rate is the market exchange rate. The expression of market exchange rate can be understood as the foreign currency transaction price of any financial institution, and there is also a price difference between cash and cash bought or sold by financial institutions.
3. Therefore, the exchange rate of foreign currency converted into RMB should be determined as the average of spot foreign exchange buying price and selling price, that is, the middle price. Therefore, the document of State Administration of Foreign Exchange 144 "Opinions on Exchange Rate Conversion among Joint Ventures after Exchange Rate Consolidation" clearly stipulates that the middle price of spot exchange announced by Bank of China is the only standard for foreign exchange conversion and bookkeeping.
4. According to China's current accounting system, the bookkeeping exchange rate can be the exchange rate on the day of foreign currency business, or it can be the exchange rate of the current month 1 day. Once the bookkeeping exchange rate is selected, it shall not be changed at will after registration. In practical application, assets, liabilities and related income and expenses settled in foreign currency can be accounted according to the exchange rate on the day when foreign currency business occurs or the exchange rate of the current month 1.
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