Consolidation with Foreign Currencies under IFRS - Example
HTML-код
- Опубликовано: 23 окт 2022
- www.cpdbox.com
This is the “consolidation example” that teaches you step by step how to prepare consolidated statement of financial position when a parent and a subsidiary have different functional currencies. So yes, foreign currency is involved.
You can learn more in the following article: www.cpdbox.com/foreign-curren...
If you’d like to learn how to consolidate in details, or anything about financial reporting in general, please visit www.cpdbox.com and subscribe to our free newsletter!
------
*Online IFRS course by Silvia, CPDbox: www.cpdbox.com/ifrs-kit/
*Subscribe to Silvia's free newsletter: www.cpdbox.com/
I think, i might need to watch it again to understand it. But this is the easiest video found on RUclips regarding translation and consolidation. Thank you so much.
Thank you and yes, I encourage to play it at 0.75 speed and re-watch, go slowly step by step, and maybe better download the related excel file from my website and follow the formulas. It is tedious process, not easy at all.
Great work, Silvia!!
Thank you Silvia! This is very helpful. I agree that equity items are more about policy decisions since IAS 21 is silent but consistency is needed.
Amazing stuff, thanks for video.
Excellent Silvia
tq silvia. great video as usual
Thank you Silvia great video, Is there any different way to check the CTD value at least to get approx. value ?
Hi Silvia
Could you please explain what would be the treatment of Deferred tax on CTD?
Hi silvia have you explain about the IAS 24 Related parties disclosure
thx for correct me at some point, I was thinking the case to add the NCI, for the pre acquisition events. but that seems only take portion shares will be the case.
Yes, in this case there's no NCI because I aimed to make it simple this time and add no goodwill and no NCI - Mommy acquired 100% of Baby.
What goes through the income statement in relation to this?
You're the best
Nyc one
Hi Silvia, very informative video, thank you for teaching. I had a question regarding inventories - IAS 21 states that non-monetary items must be translated at historical cost. Why are we using the closing rate to convert Baby's inventory to GBP?
Hi, there are two types of exchange exposure. Transaction exposure and translation exposure. You point is valid as far as transaction exposure is considered. But when it comes to foreign operations, we traslate assets and liabilitied at closing rate. This is translation of forign operations.
Thank you for the informative video. Can you also do deconsolidation with foreign currencies?
Will try :)
Great video. What would happen if Mommy didn't pay to Baby more than 1 year? How would Mommy and Baby record on the next closing rate? Would any additional elimination exist on the foreign translation?
My understanding is, if the balances remain in the balance sheets for for both companies, ie one had a debtor balance and the other a creditors balance, you would reinstate the balance by using the FX rate at the new balance sheet year end date and post the difference to FX gains and losses as an expense line in the P&L.