In the process of consolidating the translated financial accounts of a foreign operation,the calculation of minority interests will be affected by the translation process in what way?
A) The minority interests will be allocated a portion of the gain or loss on translation from the statement of comprehensive income.
B) The effect of transactions between the subsidiary and the minority interests will be eliminated after calculating the unrealised foreign exchange gain or loss implicit in the unrealised profit on the inter-company transaction.
C) The minority interests will be allocated a portion of the foreign currency translation reserve.
D) The calculation of the minority interests' is not affected.

Question

Quizplus · Accepted Answer

The minority interests are allocated a portion of the foreign currency translation reserve because this reserve reflects the exchange differences arising on translating the financial statements of the foreign operation, and minority interests share in the net assets of the subsidiary, which includes these translation differences.

In the Process of Consolidating the Translated Financial Accounts of a Foreign