Consolidation of Foreign sub
Hi there, Can anyone advise how to treat intercompany loans during the consolidation of a foreign sub under ifrs?
I am trying to calculate the fx gain/loss that goes to equity on translation of the subs net assets but I’m unsure what adjustments I should post before I do this. For example should I eliminate interco loans and make the FV adjustments before or after I calculate the gain/loss ?
I think this will make quite a difference as the interco loans are large!
Also when we acquired the sub it was a …