Consolidation of Foreign Subsidiary

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Amit (Querist)
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10 July 2008 I have to consolidate a foreign subsidiary (Intregal Foreign Operation). For this, first i have translated trial balance of foreign subsidiary into reporting currancy and got Dr/Cr diff.as "Foreign Currancy Translation".

I have to ask whether this diff. should be chaged to P/L or shown separately in B/S (as "Foreign Currancy Translation Reserve") or any other treatment. Which AS will cover this aspect (AS-11 / AS-21).

Pls suggest..

Rajesh Kumar Gupta

Rajesh Kumar Gupta (Expert)
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11 July 2008 Translation will be covered by AS-11 and in consolidation which is covered by AS-21, Foreign Currency Translation reserve is distributed as Pre-Acquisition Profit