Foreign currency cash flow accounting requires date of cash flow conversion and separate reporting of exchange effects on cash equivalents.

Foreign currency cash flows are recorded in the functional currency using the exchange rate at the date of each cash flow; unrealised foreign exchange gains and losses are non cash and excluded from cash flow categories. The effect of exchange rate changes on cash and cash equivalents held or due in a foreign currency is reported separately to reconcile opening and closing balances. Cash flows of a foreign subsidiary are translated at dates of the cash flows, allowing approximating rates such as period weighted averages but not end of period rates.

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