Consolidated cashflow statement with foreign subsidiaries

Hi tutors

I have a question:

– how do we account for the FX gain/loss in a consolidated cashflow statement that involves a subsidiary in another country.

For example, a US subsidiary has increase its trade receivables but also the exchange rate between GBP/USD has moved. Let’s say we in UK own 100% of the subsidiary; when doing the cashflow statement we would subtract current receivables to previous period of the UK entity and the ones of the subsidiary and that would give the change in cash; but with the FX change in the subsidiary this is altered since we had to translate the subsidiary receivables to GBP.

so, do we need to “stripped” the change between what is the actual movement on receivables in the subsidiary and what is the fx change? and then add back the fx change to the P&L since it is not cash?

same for example with a purchase of an asset

thanks