Exchange differences from the presentation currency
- Exchange differences are recognised in other comprehensive income.
- These exchange differences are not recognised as income or expenses for the period because the changes in exchange rates have little or no direct effect on the present and future cash flows from the entity’s operations.
- The cumulative amount of the exchange differences is presented in a separate component of equity until disposal of the foreign operation.
- When the exchange differences relate to a foreign operation that is consolidated but not wholly-owned, accumulated exchange differences arising from translation and attributable to non-controlling interests are allocated to, and recognised as part of, non-controlling interests in the consolidated statement of financial position.