105 paragraphs found in INT 16
Assume that Subsidiary B holds US$300 million of external debt the proceeds of which were transferred to Parent by an inter-company loan denominated in pounds sterling. Because both its assets and liabilities increased by £159 million, Subsidiary B’s net …
However, the accounting for Parent’s £159 million loan payable to Subsidiary B must also be considered. If Parent’s loan payable is not considered part of its net investment in Subsidiary B because it does not satisfy the conditions in AASB 121 paragraph …
If Parent reversed the hedging relationship designated by Subsidiary B, Parent could designate the US$300 million external borrowing held by Subsidiary B as a hedge of its US$300 million net investment in Subsidiary C for the EUR/USD risk and designate …
This example accompanies, but is not part of, AASB Interpretation 16. …
This example illustrates the application of paragraphs 16 and 17 in connection with the reclassification adjustment on the disposal of a foreign …
This example assumes the group structure set out in the application guidance and that Parent used a USD borrowing in Subsidiary A to hedge the EUR/USD risk of the net investment in Subsidiary C in Parent’s consolidated financial statements. Parent uses …
If the direct method of consolidation is used, the fall in the value of Parent’s net investment in Subsidiary C of €24 million would be reflected totally in the foreign currency translation reserve relating to Subsidiary C in Parent’s consolidated …
The aggregate amount recognised in the foreign currency translation reserve in respect of Subsidiaries B and C is not affected by the consolidation method. Assume that using the direct method of consolidation, the foreign currency translation reserves for …
When the investment in Subsidiary C is disposed of, AASB 9 requires the full €24 million gain on the hedging instrument to be reclassified to profit or loss. Using the step-by-step method, the amount to be reclassified to profit or loss in respect of the …
IFRIC 16 Hedges of a Net Investment in a Foreign Operation This Basis for Conclusions accompanies, but is not part of, AASB Interpretation 16. An IFRIC Basis for Conclusions may be amended to reflect any additional requirements in the AASB Interpretation …