Goodwill in foreign currency

Dear Stephen,

I am referring to Chapter 6 of SBR on Foreign Currency. In the notes, it is mentioned that goodwill should be calculated in the overseas currency and then translated at the closing rate.

However, in Example 3 of the chapter, when calculating retained earnings, the loss on exchange arising from goodwill was also considered. This loss arises from the difference between translating goodwill at the closing rate versus the historical rate.

I am unclear as to why it is necessary to translate goodwill at the historical rate at all. Could you please clarify this for me?

Thank you in advance for your help.