IAS 21

Hi,

I had a doubt regarding forex loss on loan to subsidiary. In this question which I am doing the loan amount for the subsidiary (given by parent) increases by $7m due to closing rate differences. This loss is then put in W2 reducing NA @ reporting date by $7m.

I realize that since liability increased by $7m NA was reduced by that amout. But then why does forex loss on translation on opening assets and profit not go into it as well?

On the same topic but different question, in the videos for this chapter (ch8) the comprehensive example, I understood the shortcut mentioned. And if we take the amount shown in the next video where the full working is done and multiply it by P’s % you get more or less the same amount as the short cut and that is added in w5 (GRE).

But S’s% of the gain/loss is not added to w4 (NCI) in the video while Kaplan does it for their solved problems. So if OCI is not asked in the question and I do the short cut working should I multiply the amount by (s%/p%) and add that to w4?

Phew hope that made sense.