Posted by RainT > 2017-11-19 16:56 | Report Abuse

I think no right to said forex does not effect t the revenue

When take in revenue , the company need to convert the foreign currency to RM , from here is already gain or loss on forex and this is realized gain loss forex

Changes in forex rate will always affect companies that have transactions in foreign currency . Not only the cash flow statement , the balance sheet, cash flow statement also will be affected


The difference is whether it is realized or unrealized and only , and when tax calculation it is allowable or not

Posted by gohkimhock > 2017-11-19 22:44 | Report Abuse

thank you for such a good article.

Posted by Patrick13 > 2017-11-20 08:43 | Report Abuse

I agree forex to bank balance is less important than effect of forex on receivables & payables because most important thing is bank position must be correct first. Company can play hedging or forward contract to reduce forex effect on bank balances but in short, the extent of foreign revenue and purchase still the main determination for the quantum of foreign bank balance. Otherwise, Company does not involve international business, why keep foreign currency on hand?

Posted by Patrick13 > 2017-11-20 08:45 | Report Abuse

Btw, BNM policy on convert 75% foreign currency into RM also reduced the forex exposure risk on bank balance. Don't think investor should much concern on this part.