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Definition: An exchange gain or loss is caused by a change in the exchange rate used such as when an invoice is entered in at one rate and paid at another, this will generate an exchange gain or loss. Likewise, if you raise a sales invoice in Euros and then your customer pays you in Euros the same probably apply.

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The Recognition of gain/loss due to effect of foreign exchange fluctuations on long Long term foreign currency monetary item is defined an asset or liability