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hello sir i have a couple of questions regarding foreign subsidiary consolidation
Q1)when do we calculate translation gain or loss for the adjustments given for example in ques rose june 2011 why dont we calculate the translation gain for adjustment (C) revaluation of property?q2) is goodwill translation gain and loss both allocated in par-subsidary ratio or do we just allocate the good will translation gain? and goodwill translation loss is deducted from the foreign subsidiary’s post acquisition retain earning?
thanks alot
Hi,
PPE is a non-monetary item and so is not re-translated at the reporting date and hence no translation gains or losses.
I don’t really follow the first part of your second question sorry but to answer the second part , any gain/loss is taken to the group retained earnings if we measure goodwill using the partial goodwill method. If it is the full goodwill then the gain/loss is split between the NCI and group retained earnings.
Thanks
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