Abstract This article provides a conceptual analysis of the new requirements issued by the Financial Accounting Standards Board (FASB) for reporting foreign cash flows in the U. S. dollars and develops a methodology to aid in interpreting and implementing those requirements of U.S. companies. FASB Statement 95 has effectively analyzed the relationship between foreign currency translation and the statement of cash flows. Translation of the income statement requires selecting exchange rates to translate repetitive transactions occurring during a time period as well as amortizations of historical cost balances.
Huefner et al. (Thu,) studied this question.