Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Gain/Loss on Foreign Exchange
- This topic has 1 reply, 2 voices, and was last updated 6 years ago by sudiptosen.
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- January 21, 2018 at 10:25 pm #431881
Hi,
I am doing self study for P2 in March. I am using the OpenTuition lectures which are amazing but I am a little confused on calculating the gain/loss on foreign exchange because the BPP book is totally different.
When the acquisition took place a few years back, what steps should we follow when calculating the gain or loss for the reporting year? Also the BPP methods include gain/loss line when calculating the NCI and goodwill. Can anyone shed some light on this area?
Thanks so much in advance.
January 23, 2018 at 2:27 pm #432439@amandamcfadden said:
Hi,I am doing self study for P2 in March. I am using the OpenTuition lectures which are amazing but I am a little confused on calculating the gain/loss on foreign exchange because the BPP book is totally different.
When the acquisition took place a few years back, what steps should we follow when calculating the gain or loss for the reporting year? Also the BPP methods include gain/loss line when calculating the NCI and goodwill. Can anyone shed some light on this area?
Thanks so much in advance.
I think you need to consider the Year Opening rate and Closing rate to calculate/ re-translate FOREX Gain/loss as the acquisition happened few years back and in all the past years ( incl from the year acq being made) the same process being undertaken
Gain or Loss need to be allocated to Group ( under Retained Earning) and NCI ( under OCI).
In case of Impairment in Goodwill in the current year you may need to consider the Yearend weighted average rate. Allocation to Group and NCI will be done as above
Will check & get back whether my understanding is correct
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