Foreign Currency Transactions Flashcards
What is the functional currency?
What is the presentational currency?
Dominates the primary economic environment in which sub operates
The currency you choose
Consolidation impact
When do we translate?
How do we translate assets and liabilities?
How do we translate income and expenses?
Where do we recognise exchange differences?
How do we treat goodwill and fv adjustments?
Before consolidation
At closing rate
At average rate
OCI for year/reserves
As assets/liabilities
Workings
How do we measure NA in working?
Goodwill?
Non controlling interest?
What is different about group retained earnings?(2)
How do we work out the exchange loss/gain?
In the functional currency
Work out goodwill then translate at closing rate
Work out then translate at closing rate
Translate p share of subs post acq na in working
Work out the exchange loss/gain to include in working
Work out cost of investment translated at opening rate and closing rate and work out difference
Exchange differences
How do we work out goodwill exchange difference? When do we share for the NCI?
How do we work out on net assets?
Profit?
Translate and opening rate and closing rate then work out the difference
Work out NCI% when calculated by fv method
Translate at opening rate and closing rate then work out difference
Translate at average rate and closing rate work out difference
How do we work out the TCI attributable to the NCI?
Total comprehensive income - NCI% exchange difference on profit
What do we need to remember to do if given details in functional currency?
Translate before using figures in calc of tci
How do we translate impairment?
At average rate
How do we work out total comprehensive income?
What do we include in each line?
Which line is impairment included in?
Revenue
Cost of Sales
Distribution costs
Administrative Expenses
Other income
PBT
Income Tax Expense
Profit for Year
OCI
Total Comprehensive Income
Then share between NCI and Parent
100% of parent and (100% sub / AR)
Admin expenses
