Hi,
I have been trying to understand the FX impact on deferred revenues. In the All Current method, the spot rate is used to convert the Deferred Revenue to US dollars. There is not much discussion of how this impacts the cash flow statement in the Schweser notes. There is a discrepancy in the change in deferred revenues in the balance sheet and cash flow due to FX.
Can anyone explain how the discrepancy between “deferred revenues” in cash flow and balance sheet is created. How do we reconcile the two ? Is the CTA the plug that explains the difference between items in blance sheet and cash flow.
Thanks.