- This topic has 1 reply, 2 voices, and was last updated 9 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Foreign exchange impact to Statement of Cash flows
Dear Mr Tutor,
In the period we have 200$ loss in foreign exchange, 150$ due to conversion in foreign payment, receipt…50$ due to translation foreign monetary ending balance using closing rate. Then, we add back all 200$ to profit before tax in Operating Cash Flows section or we just add back 50$? 150$ are cash-expenses, arising from transactions like:
D Cash
D Exchange loss
C Account Payable
Moreover, we imported a machine with historical value 1000$ but at the maturity, we have paid to the supplier 1030$ due to rising in exchange rate. Then, we include in Investment Cash Flows – Acquisition of assets: 1000$ or 1030$?
Thank you in advance!
Hi,
All exchange gains/losses are non-cash items and must be adjusted accordingly through operating activities.
The acquisition of the PPE would be the actual cash payment made.
Thanks