During the period between the submission of the invoice on January 24th, Y1 and the payment of the invoice on February 3, Y1 the US dollar devalued against the British pound, from USD $1.7 = £1 to USD $1.8 = £1 meaning that the original invoice amount in pounds has decreased from £44,000 to £41,556, giving BIS Ltd. a currency gain of £2,444.
Its effect in the balance sheet is shown in the Exhibit below.
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