Any exchange difference arising is recognised in profit or loss for the year.
The normal method of translating the financial statements of a foreign subsidiary is the closing rate/net investment method.
SSAP 20 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015.
Robby incurs and pays its general operating and selling expenses in its local currency dinars.
Robby has borrowed a loan of million from AB Ltd to finance its operations and other than this loan, it is not dependent upon group companies for its finances.
Original air date: July 10, 2014 Archived recording available at join us for this webinar in which our IFRS experts will talk about issues surrounding International Accounting Standard (IAS) 21: The Effects of Changes in Foreign Exchange Rates, a standard developed by the IASB to prescribe the accounting effects on a company that operates in more than one currency and reporting requirements when the operational currency of a subsidiary is different relative to that of the parent company.
However it remains in place and can be used by entities not using FRS 23.