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Default nesting formulas

Can anyone tell me what this formula is doing? Specifically, why is the ISNA
function cited here? Is it because the data it is looking for not in the
first column in order?

I understand the vlookup function but how does it work within the ISNA?

=IF(ISNA(VLOOKUP(D32,Detail!$B$1:$B$289,1,FALSE)), "new"," x")


 
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