Hello,
Ias21 requires foreign exchange differences on acquisition of a subsidiary are recognized in OCE. But i have encountered most questions where the foreign exchange difference is taken to RE even that calculated on goodwill. Please explain to me.
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foreign currency translations ias 21
10y ago#1Hi,
Yes the exchange gain on losses on translation of the subsidiary are recognised through OCI in the SOCI and thus OCE in the SFP. However to keep the calculations simple in a SFP question they are usually just left in RE.
Thanks
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