translating overseas subsidiary

Translate at closing rate and then compare the translated figure with the parent's own figure for the loan The difference is an exchange difference

is it be treated as the translated reserve in SOFP and other comprehensive income in COnsolidated Statement of P/L

and sir they included this difference in administrative expense but i think its intra group so it is not be included as we eliminate urp and intra group revenue is i am correct sir

In the subsidiary's own records, the exchange difference will be included somewhere within the statement of profit or loss (guidance is not given in IAS) Following that translation and adjustment, the loan receivable and payable will now be the same amount, so these cancel But the adjustment doesn't cancel - that is correctly included as an expense Think about the double entry Dr Administrative expenses Cr Loan payable Now cancel Loan payable against Loan receivable Ok?

sir i had question in mind that if this difference is expence to subsidiary then this is gain to the parent then why we should not cancel loss and gain with each other in consolidated statement of P/L

Only the subsidiary will record the exchange difference. Why is is a gain for the parent? The parent will still receive the amount loaned - but it will cost the subsidiary more in its local currency to settle that debt. That's all. No affect on the parent

offf sir i totally lost it i learn it in detail in f9 ok i got this and once again thanks to you sir for support me

Your welcome