Amendments to FRS 21 The Effects of Changes in Foreign
Exchange Rates relating to net investment in a foreign
operation
FRS 21 provides that if an exchange difference arises on a monetary
item that forms part of a reporting entity’s net investment in a foreign operation, that exchange difference should be reclassified
to the separate component of equity in the financial statements
in which the foreign operation is consolidated, proportionately
consolidated, or accounted for using the equity method. FRS 21 has
now been amended to state that this requirement applies regardless
of the currency in which the monetary item is denominated and of
which group entity transacts with the foreign operation.