How are fluctuations in FX rates reflected in a company’s income statement?

The fluctuations in the foreign exchange rates for the monetary items that is not considered material to the income statements can be disclosed as "other income/expense" in the income statement. However, if the amount is material enough, you can also disclose it in the actual statement line on the income statement that it relates to.

In addition, please note that the fluctuations in the non-monetary items are disclosed in "other comprehensive income" (OCI) and not the income statement. The cumulative changes for the OCI are disclosed in accumulated other comprehensive income, which is a component of equity.

Please feel free to contact me if you have any additional questions on the above.