SBRIAS 21

Did you not like my answer from January 11 at 11.19 on the ask the tutor page?

@john_girgis_Iskander said: According to IAS21, Is the foreign exchange arise from operation can be presented under cost of sales?

I think it depends on whether you are dealing with individual company account or group account. - If individual company: Exchange difference is recognised as profit or loss in Income statement. If it is from operating activites then it can be under COGS i guess. But I would take it as separate line though. Ask Mike Little for clarification. - If group account: Any exchange difference occured is recognized in Other components of Equity, not in P/L. (Unless later the subsidiary company is disposed of) I hope this helps.

Thanks for the reference Ruby but I have already answered this same post in the "ask the tutor" page

Hi everyone , Question from the same topic: If subsidiary has in BS financial assets (lets say loans issued) in the foreign currency , should subsidiary in its separate financial statements realise FX gain/loss in P&L after translation of this fanancial assets (monetary item) at the reporting period closing rates ? or FX gain\loss will be realised when loan settled? Thank you a lot in advance

As a monetary item in the separate financial statements of the asset holder, the ex diff on annual translation should be recognized each year Ok?