Goodwill on a foreign operation is in which currency, at what rate?
AParent currency, historical
BOperation currency, closing
CParent currency, average
DOperation currency, acquisition
Answer & Solution
Correct answer: B. Operation currency, closing
Goodwill and fair value adjustments are treated as assets of the foreign operation, so they are translated at the closing rate.
Keep practising Ind AS 21 The Effects of Changes in Foreign Exchange Rates
Browse all Ind AS 21 The Effects of Changes in Foreign Exchange Rates questions for CA Final, or explore more Financialreporting topics.
Related questions
A lends to foreign subsidiary B, no settlement planned. The loan is part of:In assessing exchangeability, which is considered?Does a normal administrative delay make a currency not exchangeable?If a currency is not exchangeable, what must the entity do?How does Ind AS 21 define an exchange rate?An exchange difference arises from translating currency units at what?What are the two principal issues in Ind AS 21?Which standard covers presenting foreign currency cash flows?