Foreign-currency associate translation

Under IAS 21, translate the foreign operation’s assets and liabilities at the closing rate and income and expenses at transaction-date rates, with a suitable average only when it reasonably approximates those rates. Recognise resulting translation differences in other comprehensive income and accumulate them in equity; the investor’s share affects its equity-accounted interest. Goodwill and acquisition fair-value adjustments relating to the foreign operation are treated as its assets and liabilities and translated at closing rate. Consider hyperinflation and disposal requirements separately.