I am having a difficult time in understanding the effect of foreign exchange gains/losses on the statement of cash flow, in particular relating to the following scenarios.

My auditor has advised the following to me, the method I use for preparation is the Indirect method.

I – Foreign currency operating transactions settled in the period.
I was advised that there is no requirement to adjust PBT
II – Unsettled foreign currency operating transactions
Again I was advised that there is no requirement to adjust PBT, because the movement in the related receivable or payable
included in the reconciliation to operating profit will incorporate the exchange gain or loss.Adjusting profit for the movement on the receivable or payable will eliminate the effect of movements in exchange rates since the date of the transaction.
I was of the opinion that unsettled foreign currency gains/losses had to be adjusted.
III-Determining the value of non-operating cash flows
I was informed that any exchange difference arising on a settled transaction relating to non-operating cash flows
will give rise to an adjustment between reported profit and the cash flow from operating activities.
So does it mean for example I have to remove the exchange gain/loss relating to non operating settled transaction from PBT when computing cash flows from operating activities?
help on the above queries will be much appreciated, also any reference material on the topic would be most welcome.
Chathura