Exchange rate for accumulated losses

Akhila Vinnakota (Audit Senior) (39 Points)

16 March 2018  

While translating the Trial balance of a foreign subsidary (non-integral operations) , i have opening balance of accumulated losses. At what rate those should be converted and how should i adjust the exchange difference arised.

For Example, i have to translate for 2015-16 and 2016-17 for which i already have Foreign currency figures

In 2015-16, On conversion of Trial Balance my Loss arrived was around Rs. 105000/- 

but In 2016-17, on conversion of TB at respective rates , my opening balance of loss is 120000/- which differed due to exchange rate difference in 2015-16 and 2016-17.

Now, for 2016-17 should i consider 105000/- or 120000/- as opening. If it is 120000/-, how should i adjust excess 15000/-???

Thanks in advance.