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Foreign currency translation

2.5 CSOPLOCI: Annual foreign exchange differences from translation of a
foreign subsidiary (within OCI)

Exchange difference on net assets

Closing NAs @ CR x
less
Opening NAs @ OR (x)

Comprehensive income for the year @ AR (x)
––––
Foreign exchange difference on S’s net Split between P and NCI
assets x using %
–––– Held in OCI

Annual exchange difference on goodwill

Goodwill @ CR x
less
Goodwill @ OR (x)

Impairment @ AR x
––––
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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