Page 369 - F2 Integrated Workbook STUDENT 2019
P. 369
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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