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Effect of changes in foreign exchange rates

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Effect of changes in foreign exchange rates

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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  • April 17, 2021 at 6:39 pm #618047
    osamasyed123
    Participant
    • Topics: 51
    • Replies: 42
    • ☆☆

    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: 16
    • Replies: 3411
    • ☆☆☆☆☆

    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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