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The goal of this Normal is to require the provision of information about the historic modifications in money and cash equivalents of an entity by the use of a statement of money flows which classifies cash flows through the period from working, investing and financing activities. However, the effect of exchange rate modifications on money and cash equivalents held or due in a overseas forex is reported in the assertion of cash flows to find a way to reconcile cash and cash equivalents initially and the end of the period. Entities are required to present cash flows from working, investing, and financing actions utilizing either the direct technique or the oblique methodology. Accordingly, it can’t be classified as cash and cash equivalents.
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