Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › gain or loss on translation Page 36 OT notes
- This topic has 5 replies, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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- March 22, 2020 at 10:57 pm #565550
my question is that in the given example goodwill is calculated at proportionate method, is that the reason to record gain or loss in OCI?
what will be the case if fair value of goodwill is there. we allocate part of loss to NCI and rest to OCI.
when we are saying that balancing figure of post acquisition reserves already account for gain or loss on translation then why we need for the working on page 36 of OT notes
March 23, 2020 at 8:05 am #5655581. Your understanding about goodwill XD is perfectly correct.
2. The ‘balancing figure’ takes account of XD on NA and profits but not goodwill.March 24, 2020 at 3:09 am #565600so if we simply add good will XD to balancing figure we dont need to do that working of page 36.
because what confuses me is we are recording exchange loss on goodwill in working 4 of example 3 which is group retained earnings which ultimately included the balance of OCI. am i missing on something?
please clarify when do we need to do working on page 36?
March 24, 2020 at 1:12 pm #565641If you are asked about FX, they will ask for 2 things:
1. Calculation of goodwill as in solution to Example 3.
2. Proof of XD for OCI – as in working on page 36.
That’s it -as you know they don’t test full consolidations any more.
March 27, 2020 at 2:32 pm #565990thanks alot stephen
March 27, 2020 at 4:26 pm #565995My pleasure. Stay well.
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