Exchange differences on translation of a Non-Integral Foreign Operation are:
AAccumulated in Foreign Currency Translation Reserve (FCTR) until disposal
BRecognised in P&L immediately
CAdded to revaluation reserve
DCapitalised to PPE
Answer & Solution
Correct answer: A. Accumulated in Foreign Currency Translation Reserve (FCTR) until disposal
1. Step 1: Per AS 11, exchange differences on NIFO are accumulated in FCTR.
2. Step 2: On disposal of NIFO, FCTR is reclassified to P&L.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 15 "Accounting for Branches including Foreign Branches"_