Dear tutor,
I face some problem relating to this standard,in past yr qs dec2006,the entity have a foreign subsi and subsi hav a investment at the opening date 28 million euro,and closing bal 24 m euro,and this 2 figure translate at opening and closing exchange rate,the model answer stated that bcos its a non monetary item any currency diff is not separated if recognised in profit or loss then whole amt go P or L if regconised in equity then all go equity,but in the jun 2009 qs aron the entity also have a foreign subsi and has a debt this time the model answer stated that FV changes and exchange rate diff must be separated,changes in FV must go to OCI changes in exchange rate go to P n L,why its not consistent?then the Dec09 qs 1 Grange also hv this similar situation, model answer stated all diff go to OCI(treatment same as dec 06 answer)wht should I do if I face this kind of qs in this coming exam?
I face some problem relating to this standard,in past yr qs dec2006,the entity have a foreign subsi and subsi hav a investment at the opening date 28 million euro,and closing bal 24 m euro,and this 2 figure translate at opening and closing exchange rate,the model answer stated that bcos its a non monetary item any currency diff is not separated if recognised in profit or loss then whole amt go P or L if regconised in equity then all go equity,but in the jun 2009 qs aron the entity also have a foreign subsi and has a debt this time the model answer stated that FV changes and exchange rate diff must be separated,changes in FV must go to OCI changes in exchange rate go to P n L,why its not consistent?then the Dec09 qs 1 Grange also hv this similar situation, model answer stated all diff go to OCI(treatment same as dec 06 answer)wht should I do if I face this kind of qs in this coming exam?
