Same functional currency of a foreign operation as the reporting entity

Sir the bpp textb page 462 has it written on the top that “In this situation, the foreign operation normally carries on its business as though it were an extension of the reporting entity’s operations.
For example, it may only sell imported from, and remit the of proceeds directly to, the reporting entity. Any movement in the exchange rate between the reporting currency and the foreign operation’s currency will have an immediate impact on the reporting entity’s cash flows from the foreign operations. In other words, changes in the exchange rate affect the individual monetary items held by the foreign operation, not the reporting entity’s net investment in that operation.”

Sir I got the point but how will we account for this?