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hello
Can someone please help – I don’t understand how we arrive at the exchange difference when consolidating a foreign subsidiary.
From the notes I have:
Net Assets b/f @ opening rate + ? +/- Ex diff= Net Assets c/f
I don’t understand the figure I am supposed to be adding ‘?’
thanksThe converted retained earnings for the year. Take the converted profit or loss bottom figure (ie profit for the year) deduct the dividend paid by the subsidiary at the actual rate and that will leave you with the converted retained profit for the year for the foreign subsidiary
Ok?
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