Consolidated cash flow

1137 views 1 replies

Dear All,

Im presently working on Consolidation of Foreign Subsidiary (Holding Co. being Indian Company).

I have a query with regards Consolidated Cash Flow (AS3).

How will foreign exchange gain/loss be given effect for various items like change in working capital items, etc. be given ? How to record them (At what rate ?) How to restate them (At what rate) ?

Please explain the same in detail.

 

Regards,

Nihar Dharod

Replies (1)

FX impact on each working capital item will be computed on the closing rate and will be adjusted against the movement in each working capital item. All other items of cash flows are reflected at the exchange rate on which the transactions are done. Additions to fixed assets must be shown on the date of purchase of property.

 

Adjustment of FX in cash flow statement is bit critical and complex process. It is difficult to explain in brief about the said process. Please read some text books to acquire further knowledge on this subject.

 

Thanks

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 July 2026
Article Assistant

G A R U D & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
ARTICLESHIP 14 July 2026
Article Assistants

R Shyam and Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 17 July 2026
Article Assistant and B.com pass

BANSAL YOGESH AND CO

Gautam Budh Nagar

B.Com

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details