i have a dicussion in advainced financial accounting can u help

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Dissuasion Board Question

Question

On November 30, 20×5, Bow Company received with a cost denominated in pounds. During December 20×5 the dollar’s value declined relative to the pound. Bow believe that the original exchange rate will be restored by the time payment is due in 20×6.

Required:

  • State how Bow should report the impact, if any, of the changes in the exchange rate of the dollar and the pound on its 20×5 financial statement.
  • Explain why reporting is appropriate?

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