Sir,
It seems you have misunderstood Cash Flow hedges to be same as Unrealised Foreign Currency Gain/ Losses.
Unrealised Foreign Currency Gain/ Losses arise due to Cash/ cash equivalents held in Balance sheet. This item is an Non cash item used only for reconciliation purpose.
Example the company had 10$ at end of year 1 when exchange rate was Rs. 75. So net reported cash on balance sheet is Rs 750. Assuming the figure at end of year 2 is also 10$ and exchange rate is now at Rs.100 reported cash on balance sheet is at Rs. 1000. In CFO that’s why this gain is substracted and loss is added.
Cash Flow Hedges are simply Currency Futures bought by company. If company has underlying receivables, then classify gains/losses through OCI else do it through P&L.
sorry to go into theory as there is nothing to reconcile here. If you think its necessary you can reduce/increase cash on Balance sheet by that figure and balance it through equity.
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