Goodwill foreign exchange difference

This topic has 3 replies, 3 voices, and was last updated 7 years ago by wyyy.

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November 23, 2018 at 9:12 am #485579
goeswhatever
Member
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Hi, for goodwill exchange differences (on acq date vs year end), should it be put into retained earnings or into OCI?

Thank you.
November 23, 2018 at 2:41 pm #485633
wyyy
Member
- Topics: 24
- Replies: 22
Hi,
I have question regarding this section too.
I saw in BPP revision kit pg335, the double entry for exchange loss (Full goodwill method) is :

Dr Other comprehensive income
Cr translation reserve
Cr Non-controlling interest

However, I wonder why CR translation reserve and NCI? It means increase translation reserve and NCI? but It’s exchange loss

Thank you.
November 29, 2018 at 3:31 pm #486453
P2-D2
Keymaster
- Topics: 4
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Hi,

Any gains on translation of an overseas subsidiary are recognised as a separate component of equity, being the translation reserve (OCI).

Thanks
December 2, 2018 at 3:24 am #486736
wyyy
Member
- Topics: 24
- Replies: 22
Hi,
May I know how about losses?
I saw in BPP revision kit pg335, the double entry for exchange loss (Full goodwill method) is :

Dr Other comprehensive income
Cr translation reserve
Cr Non-controlling interest

However, I wonder why CR translation reserve and NCI? It means increase translation reserve and NCI? but It’s exchange loss

Thank you.
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