firat

1. Cash initially no adjustment. But at the end of adjustment for inflation you recognize "purchasing power gain/loss" which includes beginning cash, change in cash, receivables and monetary liabilities.
2. Non monetary assets are translated (adjusted) for inflation.
3.Yes.
4. NI is translated at current prices, Dividends @ the fx rate when they were declared. Thus, RE has a mixed effect.
5. Yes.

Because, say, next year beg PI is 200 and ending PI is 300, the avg was 250, you'll be using yr2 beg values * 300/250 and NOT yr2 beg values * 2.50. Makes sense? I guess, I did a terrible job explaining the last question.