Finance, Forex and Investments

How do i calculate effect of exchange rate fluctuations on cash held that on the cashflow statement?

Do I calculate effect of exchange rate fluctuations on opening cash balances only or on the cash balances –year to date. If its exchange rate fluctuations on opening balances what happens/where do i disclose effect on exchange rate fluctuations cash – year to date.

Public Comments

1. Depends with whether the foreign exchange is derived from operating, investing, financing or foreign operation. It also depends on whether the fx is realised or not. Please check out the article below for further reading on the treatment of the above categories. http://www.summaryworld.com/business-and-finance/how-to-disclose-effect-of-exchange-rate-fluctuations-on-cash-held-in-a-cash-flow-statement