What are exchange gains or losses?

An exchange gain or loss is defined in CTA09/S475.

An exchange gain or loss is recognised when you are required to compare the value of an asset or liability valued in one currency with its value in another currency at two different dates.

Exchange gains and losses are recognised on the following occasions.

(1)At the accounting period end when there is a difference between the valuation of monetary assets and liabilities

at the date they are originally entered in the books during the AP and at the accounting period end, and

from one accounting period end to another, if continuing.

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