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INDAS FOREIGN CURRENCY TRANSLATIONS

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yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 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

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.

CA Aakarsh Jain

4330 Points Posted on 20 April 2022

Thanks for sharing.

yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 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.