What will be the effect of changes in foreign exchange rate on cash and cash equivalents? Let say Foreign exchange loss of 40 represents the reduction in the carrying amount of a short-term investment in foreign-currency designated bonds arising out of a change in exchange rate between the date of acquisition of the investment and the balance sheet date.How will this foreign exchange loss of Rs40 effect cash and cash equivalents at the end of period?Answer this query with reasons.
Should be shown as Reco of op. & Cl. cash & Cash Equivalent
Thanks Mam for your answer,But Mam Explain your answer with reasons.Why will be this foreign exchange loss shown as reco. of opening and closing cash and cash equivalents? Please tell the logic behind it?
There is no logic. It's a requirement as per AS3. The relevant paras from AS3 and Extracts of cashflow statements of HDFC ICICI & Axis Banks are pasted in this pdf file. Please refer the same.
Thanks Mam for yor valuable time and kind help.If any further queries related to any other topic raises,I would like to ask from you because your answers are quite satisfactory.May I have your email id for this purpose plz.
Reply soon Mam Plz Plz Plz.
you may put your queries in this forum and send link to my pm.I believe in sharing knowledge
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