“Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation (see paragraph 15) shall be recognised in profit or loss in the separate financial statements of the reporting entity or the individual financial statements of the foreign operation as appropriate”
Sir how will we know where the recording of the change is appropriate?
Ask the Tutor ACCA SBR
IAS 21 para 32
8y ago#1Hi,
As appropriate is referring to the translation having been done at the closing rate for the monetary items and then being in either the individual or group accounts dependent on which one it is recognised in.
Try not to go through each paragraph of the standards as it will get too complicated as you try and pick out bits that are unlikely to be seen in the exam.
Thanks
Right. It was actually mentioned in the BPP text but as u said u didnt have access to it I quoted the IAS’ para
Thank you
8y ago#3OK.
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