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Foreign Currency -intragroup loans

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Foreign Currency -intragroup loans

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarMikeLittle.
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  • May 26, 2014 at 6:40 am #170865
    Avatarmeaow01
    Member
    • Topics: 23
    • Replies: 36
    • ☆☆

    1- i still coudn’t understand the reasoning behind adjustments of intragroup loans/payables in translated accounts of foreign subsidiary.when we apply closing rate to existing liabilities, arent they itself get updated ?.(calculating exchange difference on loans and adjust them in translated accounts seems to me double count )

    2
    exchange difference on long or short term intra group
    monetary items can not be offset against other intra group balances.( couldnt get impact of this sentence in questions p2)

    May 26, 2014 at 5:04 pm #170976
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    “calculating exchange difference on loans and adjust them in translated accounts seems to me double count”

    Translate, compare, account for difference as exchange gain / loss and cancel

    Give me the full context of your second issue, please

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