Homepage
PR Newswire
17-03-2013, 09:49 PM
Thx donmihaihai and maniac.
After reading those explanation, does it mean that,
1) fx gain/loss on net profit (for all completed transaction) for current FY will be recognised immediately and would not affect subsequent yr Equity value.
2) Investment items such as asset/bond/stock, their FX will be reflected in Equity statement to balance the A=L+E. since they are not transacted and recognised, so their value will affect the Equity side of value each and every subsequent year until it was a done deal.
3) so if my rational of buying a company with oversea operation base on its book value, I should hav to discount on its assets side of value BUT not the retained earning since the earning already considered the FX every financial year.
Thx again.
After reading those explanation, does it mean that,
1) fx gain/loss on net profit (for all completed transaction) for current FY will be recognised immediately and would not affect subsequent yr Equity value.
2) Investment items such as asset/bond/stock, their FX will be reflected in Equity statement to balance the A=L+E. since they are not transacted and recognised, so their value will affect the Equity side of value each and every subsequent year until it was a done deal.
3) so if my rational of buying a company with oversea operation base on its book value, I should hav to discount on its assets side of value BUT not the retained earning since the earning already considered the FX every financial year.
Thx again.