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