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Goodwill foreign exchange difference

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill foreign exchange difference

  • This topic has 3 replies, 3 voices, and was last updated 7 years ago by wyyy.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 23, 2018 at 9:12 am #485579
    goeswhatever
    Member
    • Topics: 12
    • Replies: 11
    • ☆

    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
    • Replies: 7231
    • ☆☆☆☆☆

    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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