Maintain four currency fields
This is an illustrative setting. Record reporting, operating, financing, and valuation or exit currency for each asset. When they differ, foreign exchange reaches the investment through revenue, cost, leverage, and valuation.
Trace cash flow without double counting
Revenue and cost in the same currency do not necessarily offset at every point. Collection terms, payment timing, fixed cost, and repricing frequency can leave near-term cash exposed.
A currency move may already be present in the earnings case, then appear again in a valuation multiple or translation line. Mark the channel before aggregation.
- Operating cash-flow effect.
- Foreign-currency debt and interest.
- Valuation translation and exit price.
- Term and size of existing hedges.
Keep uncertainty in the allocation record
Private assets lack continuous pricing, so currency sensitivity often depends on scenarios. Distinguish contract and financial-statement evidence from judgement.