Effect of changes in foreign exchange rates

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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April 17, 2021 at 6:39 pm #618047
osamasyed123
Participant
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Hi Sir
In question Toobasco of Bpp kit they have added the loss on effect of chnages in foreign exchange rates
In operating activities of $28M
Why have they added it ?
Shouldnt it be deducted in investing activities ?
April 18, 2021 at 12:09 pm #618091
Stephen Widberg
Keymaster
- Topics: 17
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The XD are NOT A CASH FLOW.

So they should not have been included in the CFS at all.

So the exam solution is correcting the error by adding them back.
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