A method and a device for detecting flash gas in a vapor-compression refrigeration or heat pump system comprising a compressor, a condenser, an expansion device, and an evaporator interconnected by conduits providing a flow path for a refrigerant, by determining a first rate of heat flow of a heat exchange fluid flow across a heat exchanger of the system and a second rate of heat flow of the refrigerant across the heat exchanger, and using the rates of heat flow for establishing an energy balance from which a parameter for monitoring the refrigerant flow is derived, to thereby provide early detection of flash gas with a minimum number of false alarms.