On November $20,20$X$5,$ Bow Company received goods with a cost denominated in pounds. During December $20$X$5,$ the dollar$$s value declined relative to the pound. Bow believes that the original exchange rate will be restored by the time payment is due in $20$X$6.$

$1.$ How should Bow report the impact, if any, of the changes in the exchange rate of the dollar and the pound on its $20$X$5$ financial statements?

$2.$Do you feel that this reporting is appropriate? Give at least one reason as to why or why not.