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INDAS FOREIGN CURRENCY TRANSLATIONS

yasaswi gomes (My grammar is 💯 good I) (7290 Points)

19 April 2022

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

find attachment

Maths is fun sometimes

Bye

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2 Replies

CA Aakarsh Jain (CA) (10216 Points)
Replied 20 April 2022

Thanks for sharing.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 22 April 2022

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.