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Hi
when translating the goodwill, why do we use the closing value of the currency and not the historic value of currency (i.e. on the day of acquisition)?
thank you in advance for your help, which I very much appreciate!
Hi,
All assets and liabilities of the subsidiary are translated at the closing rate, including the goodwill. The movement on the FX differences related to goodwill are recognised through OCI.
Thanks
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