Regarding treatment of foreign exchange gain or loss in cash

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 i am confuse regarding the treatment of foreign currenc exchange loss and gain in cash flow statement . plz sir explain the treatment of this issues.........

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while solving cash flow statement i found merely short term investment is treated as cash and cash equivalent in our practice manual and study material. i am confused about this. i understood merely short term investment is not cash  equivalents  as as per as 3 cash equivalents are thoes short term investment which are easily converted into amount of cash without decline of its value  and having maturity period of three month or less .but  in accountancy short term investment are thoes investment which is readily realisable and intended to be held for not more than one year from the date on  which such investment is acquired.plz sir make my confusion clear.actually i am not taking any class so i am reading study material and pc tulsian books.and i found both books have done same treatment .

Effect of only Unrealised foreign exchange or loss is to be removed (For e.g restatement gain/loss - Effects of the bal of from Dbr or cr to be removed

thank u sir 

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