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Chapter 18
2.4 CSOFP: Foreign exchange differences on goodwill
Total exchange difference on goodwill (in reserves within CSOFP)
Goodwill @ CR x
less
Goodwill @ HR (x)
Impairment @ AR x
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Check whether FV method
Foreign exchange difference on GW x or proportionate method
––––
If proportionate, all P’s.
If full, split between P and
NCI.
Always calculate S’s goodwill in the functional currency of the sub to
determine the exchange differences.
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