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Dear Tutor,
Can you please briefly explain the concept, or steps of IAS 21 when consolidating the fs?
I have practised the question on Heel (mock) i saw the fx gain on goodwill and net assets as well.
This is always the way to do right?
Thank you in advance.If I have understood you correctly, yes.
Re-translate the goodwill each year and take the forex difference to Statement of Comprehensive Income and Statement of Changes in Equity.
Calculate the exchange difference by applying the F3 equation of Net assets at the start + retained earnings for the year (should) = net assets at the end of the year. But of course, the equation will not work because of exchange differences. Calculate, split between parent and nci and record both in the respective columns in Statement of Changes in Equity
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