Hi dear sir. Could you please provide the double entry for the Example 4 of Chapter 6 (Foreign Currency). I am confused in this example, if you could provide the double entry, it would be very helpful.
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Foreign Currency Example 4 Double Entry
20d ago#1DR OTHER COMPREHENSIVE INCOME 28.6
CR NET ASSETS 15.3
CR P&L 2.3
CR GOODWILL 11.0
Remember that there is no 'real' double entry or journal in group accounts. Only individual companies post debits and credits.
If there is exchange loss of 15.3 m on Net Assets and exchange loss of 2.3 m on profit for the year, then why are they credited, why not debited to reflect the loss and for the balances to be decreased?
18d ago#3The credits / debits are against each line in the SFP / P&L. If you look at a set of real accounts you can see them. Look at note 14 in Marks and Spencer accounts:
SIGNED Financial Statements - Marks and Spencer plc FY25.pdf
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