When revaluing Euro balances at month end upon consolidation into GBP, I have been using the closing rate for balance sheet items and the average rate (annual rate) for the P&L. What rate whould I use for valuing the reserves bought forward from the previous financial year, bearing in mind these reserves would have been valued at the average rate when they were classed as P&L last year
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The £Stg for the b/fwd
The £Stg for the b/fwd reserves will be last year's figure. Everything else, i.e:
the difference between closing rate and opening rate on the b/fwd reserves, and the difference between average rate and closing rate on the result for the year
.... is exchange difference movements on reserves.
Well your question was how to translate the "reserves brought forward from the previous financial year" and that was the question I answered.
As at what date are you doing the consolidation here? 31/12/14?
What you describe as the "revaluation reserve" sounds like the 2014 exchange difference taken to reserves, not the unrealised surplus on a property revaluation. Is that right?
So my first answer deals with this doesn't it?
What is perhaps confusing you is that your opening reserves are in fact the sum of the P & L balance and what you are referring to as the revaluation reserve. Add those two figures together and all will become clear.
Yes of course. And it would help if you stopped calling the exchange difference posted to reserves "the revaluation reserve"!
Translation reserve arises at Consolidation when a particular subsidiary maintains it books of accounts other than INR. (India Specific).