Consolidating financial statements foreign currency dating a gay cancer man
The Standard sets out different requirements for foreign currency translation for non-monetary and for monetary assets and liabilities in the course of subsequent measurement.Non-monetary assets that were originally acquired in foreign currency are subsequently measured in local currency on the basis of the cost recognised at the acquisition date.In addition, it addresses other specific issues relating to the application of the modified closing rate method, in particular in connection with individual consolidation adjustments.Hidden reserves and liabilities identified in the course of the initial consolidation of subsidiaries in the consolidated financial statements, provided that they are realised in the currency of the subsidiary concerned, as well as any resulting goodwill or negative consolidation differences form part of the net investment in the foreign subsidiary.The Standard encourages entities to apply section 308a of the HGB to the foreign currency financial statements of associates that are measured in the consolidated financial statements using the equity method in accordance with section 312 of the HGB.In accordance with section 308a of the HGB sentences 1 and 2, all assets, liabilities, prepaid expenses or deferred income, and special items of a foreign subsidiary are generally translated into euros at the mid-market spot rate at the group reporting date, items of equity at historical mid-market spot rates and income statement items at average rates.Assets, liabilities, prepaid expenses or deferred income, or special items resulting from a foreign currency transaction are initially recognised at the spot rate (the applicable bid or ask rate) at the transaction date.Any gains and losses arising on the initial recognition of a foreign currency transaction are translated at the same exchange rate as the underlying balance sheet items.
Their carrying amounts in the consolidated financial statements adjusted in subsequent periods, which are to be calculated in accordance with sections 301 and 309 of the HGB and the requirements of GAS 23 expanding on them, are translated into euros at the reporting dates following the date of initial consolidation in accordance with section 308a of the HGB.
All currency translation differences resulting from foreign currency translation in the course of the subsequent measurement of non-monetary and monetary assets and liabilities that are not part of hedging relationships within the meaning of section 254 of the HGB are recognised in profit or loss.
The assets and liabilities of a branch in a country outside the euro area are measured in the same way as assets and liabilities held directly by the head office at the acquisition date and at the subsequent reporting dates.
The Standard also contains requirements addressing foreign currency translation in the case of disposals/acquisitions of shares without a change in status, a change in the method of consolidation or inclusion, and accounting for subsidiaries in a multi-level group.
The Standard requires exchange rate-related elimination differences arising in the course of consolidating intercompany balances generally to be recognised directly in equity in the ‘Currency translation difference recognised in equity’ line item.