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Hi, please help me on this small thing. Where currency exchange difference should be on the statement of financial position? Is it included in retained earnings or separately under heading Exchange difference?
You do not show exchange rate differences on the SOFP. You convert all the subsidiary’s balances to the parent’s reporting currency. There is a reserve in the equity section that holds “gains on exchange rate movement.”
It’s awhile since I did P2, so I’m not 100% sure though.
Sorry my English is not perfect. Probably i did not make clear what i wanted,here is answer paper Q1
https://www.accaglobal.com/content/dam/acca/global/PDF-students/2012/p2int_2011_jun_a.pdf
exchange reserve is reported separately, i thought it should be in retained earnings?
It says, on the answer paper, that it can be included in retained earnings or reported under a separate heading ie. exchange reserve; both are acceptable, but you must show your workings.
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