Foreign currency transaction gains and losses

{
  "id": "MLC-T-ENE-000833",
  "term": "Foreign currency transaction gains and losses",
  "field": "Energy",
  "definition": "Gains or losses resulting from the effect of exchange rate changes on transactions denominated in currencies other than the functional currency (for example, a U.S. enterprise may borrow Swiss francs or a French subsidiary may have a receivable denominated in kroner from a Danish customer). Gains and losses on those foreign currency transactions are generally included in determining net income for the period in which exchange rates change unless the transaction hedges a foreign currency commitment or a net investment in a foreign entity. Intercompany transactions of a long-term investment nature are considered part of a parent's net investment and hence do not give rise to gains or losses.",
  "references": [
    "EIA Glossary"
  ],
  "url": "https://mlchart.com/terminology/energy/foreign-currency-transaction-gains-and-losses/"
}