Page 269 - Microsoft Word - 00 P1 IW Prelims.docx

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.

Illustrations and further practice

Now try Illustration 4 from Chapter 22.

263