INDAS FOREIGN CURRENCY TRANSLATIONS

Hi,

For anyone interested in understanding foreign company translations please go it through here

https://yasaswigomes.blogspot.com/2022/04/foreign-subsidiary-translation-in-nut.H T M L

or 

find attachment

Maths is fun sometimes

 

Bye


Attached File : 2750458 20220419204305 translations.xlsx downloaded: 108 times
Replies (2)
Quick Summary
This discussion delves into the complexities of foreign company translations, particularly focusing on subsidiary accounts. It highlights a tricky aspect of translating retained earnings, explaining how they are adjusted for net income minus dividends. The author shares insights on calculating reserves and addresses a situation where retained earnings appeared negative, clarifying the principle of 'adjusted' figures.

Thanks for sharing.

Retained earnings are adjusted for net income less dividends. We know this and it is there while translating retained earnings. It is required to calculate : 

PAT

-Dividends

C/B

Pre Retained earnings - C/B = Reserves. This was tricky! and retained earnings was lesser than PAT giving it a negative number. However, the principle suggests as - 'adjusted' and not 'net of PAT-Dividends'. So I took a positive number. 

I have added Answer 3 which is close to perfection. Next, I will check all entries and intragroup to finish off the model. Appreciate your support and patience.  

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