Explain why foreign currency gains or losses in relation to the translation of the accounts of a

Question:

Explain why foreign currency gains or losses in relation to the translation of the accounts of a foreign operation into a particular presentation currency are not treated as part of the period’s profit or loss, but instead are included within other comprehensive income and then transferred to an equity account referred to as the foreign currency translation reserve.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: