On some Financial Statements I found “Gain/Loss on FOREX” –Does any one know What is “FOREX” refer to…?

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Chrys.r.m 8 months 1 Answer 327 views 0

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  1. FOREX is short form of Foreign Exchange.
    A business usually deals in imports and exports where the payment or receipt is expressed in a currency other than your country’s.
    When the transactions are recorded for the purchase and sale of goods they are converted into local currency at the rates prevailing on that day. When the actual payment is received or made, the exchange rate might be different than that already recorded which may result in a gain or loss, which is reported under a single heading of Gain/(Loss) on foreign exchange in the income statement.

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