[xiara13]

1/Monetary/Non-Monetary does not apply. At year end, assets and liabilities including goodwill are re-translated using year end rate. Income and expenses using average/date rate.
2/There is no gain or loss at initial consolidation, it will not be recognised until the subsequent year when assets and liabilities are re-translated.
3/FX gains/losses are held in other components of equity, released on disposal of the assets to PorL.

[xiara13]

Amazing! Thank you so much! I was really stuck with that!

[xiara13]

Which video? Not any clearer from the study notes. Could you provide some examples?

[xiara13]

Could you clarify regarding treatment in profit or loss statement, as I believe has to be adjusted here too.

Say sold £100 with cost of £90.

Cost of sales Cr £90 and revenue dr £100 (instead of adjusting retained earnings for profit element), and group inventory dr £10. Is this right?

I’m doing SBR by the way, not sure if I’m in the correct forum.

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