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FOREIGN OPERATIONS - Coggle Diagram
FOREIGN OPERATIONS
FOREIGN OP TRANSLATION
Owner's interest @ acquisition - historical acqui-rate
- ensures GW or GoBP doesn't change
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If not a wholly-owned sub, exchange
diff attributed to NCI too
Ex. 15.1
- FCTR in analysis & journals - for "since acquisition"
- Exchange Diff in analysis & journals - for "current year"
DEFINITIONS
- Primary factors IAS 21.9
- Other additional factors IAS 21.10-11
- link IAS1.122
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- Presentation currency (free choice NB!)
- Spot rate
- Closing rate
- Foreign Operations - ...activities conducted outside SA or in another currency from Reporting Entity
- Monetary item IAS 21.16
NB diff w/ non-monetary item
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NET INVESTMENT IN F.O
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BUT in "consolidated FS", reclassify from
P/L to OCI via pro-forma
Dr Forex diff (P/L)
Cr Exchange diff (OCI)
- loan or trade receivable differences
if loan/receivable in local currency,
translate w/ AVE rate
GOODWILL & IFRS 3 ADJs
[1] Goodwill
NCI Proportionate
- 'Excl GW' allocated to P & NCI
- 'GW' allocated to P only
NCI FV
- Éxcl GW' & 'GW' allocated to P & NCI
- FCTR/Exchange diff in Analysis must be split
- GW deemed to be an (A)
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ASSOCIATE & JVs
Any GW from analysis must NOT be translated back to FC
to eventually calc "exchange diff" (dont split to GW & Excl GW)
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NEW Journal
- Remeasure GW & add to "Exchange Diff"
Dr Investment in A ltd
Cr Exchange Diff
DISPOSAL
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cumulative "exchange diff" amt reclassified from Equity to P/L
- Dr Reclassification adj (OCI)
Cr Exchange diff (P/L)
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Logic of the journal:
- Dr 'Proceeds' & split into Cost and Gain
- Cr NCI because you are losing shareholding
- Dr FCTR that is being reattributed to NCI
- 'Change in ownership' will be balancing figure