Page 321 - SBR Integrated Workbook STUDENT S18-J19

Group accounting – Foreign currency

2.3 Opening net assets and profit

The proforma for calculating the current year exchange gain or loss on the translation
of the opening net assets and profit is as follows:

Dinars m Exchange rate $m

Opening net assets X Opening rate X
Profit/(loss) X/(X) Average rate X/(X)

Foreign exchange
gain/(loss) Bal. fig. X/(X)

––––– –––––

Closing net assets X Closing rate X
––––– –––––

The gain or loss on translation of the opening net assets and profit is apportioned
between the group and non-controlling interest based on their respective
shareholdings.

Example 1 – continued

Using the information in Example 1, calculate the exchange gain or loss
arising on the translation of the opening net assets and profit.

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