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LIGNUM Co.(dec 12 adapted)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › LIGNUM Co.(dec 12 adapted)

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • February 7, 2021 at 11:52 am #609558
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Sir i don’t understand why equity(which is 100% exposed to translation risk) not converted from MR to euros and checked for? Why only assets and liabilities? Why the difference occurring in value of equity not taken into consideration when MR falls by 20%?

    February 7, 2021 at 3:31 pm #609575
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    Share capital + reserves is always equal to the net assets.

    The only reason for changes in the amount owed to the shareholders is because of changes in the value of the net assts.

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