Foreign currency cash flow statement


Ann

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The finanical statement transferred into froreign currency. Income statement use average rate and balance sheet item use closing rate. Then the cash flow statement can't balance for the depreciation amount are difference in the income statement and balance sheet.

Can anyone help me?
Thanks in advance.
 
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bklynboy

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You should have a line in cash flow called "Effect of exchange rates changes on cash and cash equivalents" that is used to balance. This is typical since foreign currency revaluations impact the cash flow statement. Google any multinational company's financial statements and you can see how they present this.

Also, depreciation is a non-cash item so I dont see how this is causing you an issue to develop cash flow. However, your question is valid when discussing how to balance cash flow items that use different exchange rates.
 
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