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Dear sir,your videos are the best ,Thank you
question is: i got confused on foreign transaction for group accounting .In your videos all you find is you calculate forex Loose on Investment in Subsidiary and results goes to Retained Earning for parent.But Kaplan calculate forex differences for Goodwill and Net assets and spread it between NCI.Please adviceHi,
Thanks for the kind comments and glad you find them useful.
When we’re calculating the FX differences we look at the change in opening net assets, profit and goodwill. You can do this calculation when preparing the group SPLOCI as you need the FX differences to go in OCI. When you are doing the group SFP then it isn’t necessary to do the calculation. You can if you wish but it is too time consuming on top of everything else.
Thanks
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