realised gains and losses
Realised FX gains or losses reflect the change in the value of foreign currency denominated sales/purchase transactions that have been settled prior to the close of the accounting period. For example, a U.S.-based company sells EUR 100,000 worth of motor vehicle parts to a European distributor.
When the invoice was recognised, the spot EUR-USD rate was 1.10. When the customer settles the invoice the rate has moved to 1.20. Accordingly, there is a $10,000 realised FX gain, which is recorded in the income section of the income statement.