Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p46
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 123649–126423

a disposal group as held for sale by the entity applying AASB 5, if the disposal group included assets that generated income and expenses that the entity classified in the operating category immediately before its classification as held for sale.
(c) in the investing category – gains and losses on disposal of a consolidated subsidiary, if the only assets of the subsidiary were investment property that the consolidated reporting entity did not invest in as a main business activity and related income tax assets. The gains and losses include the reclassification from equity to profit or loss of foreign exchange differences required by paragraph 48 of AASB 121.

Classification of foreign exchange differences and the gain or loss on the net monetary position
B65 To apply paragraph 47, an entity shall classify foreign exchange differences included in the statement of profit or loss applying AASB 121 in the same category as the income and expenses from the items that gave rise to the foreign exchange differences, unless doing so would involve undue cost or effort (see paragraph B68).
B66 For example, an entity classifies foreign exchange differences on:
(a) a receivable described in paragraph B48(b) denominated in a foreign currency, in the same category as the income and expenses from that asset – that is, in the operating category; and
(b) a debt instrument that is a liability described in paragraph B51(a) denominated in a foreign currency, in the same category as the income and expenses on that liability – that is, in the financing category (unless the entity provides financing to customers as a main business activity and classifies the income and expenses from the liability in the operating category applying paragraph 65).
B67 An entity might classify in more than one category income and expenses from a transaction that does not involve only the raising of finance. For example, the purchase of services in a transaction denominated in a foreign currency and negotiated on extended credit terms could give rise to an expense for the purchase of the services classified in the operating category (see paragraph B55(a)) and interest expenses classified in the financing category (see paragraph B54(a)). In such cases, subject to paragraph B68, an entity shall use its judgement to determine whether the foreign exchange difference relates to the amount classified in the financing category – and classify it in that category – or whether it relates to the amount classified in another category – and classify it in that category. An entity shall not allocate between categories a foreign exchange difference arising on a liability from a transaction that does not involve only the raising of finance. In making its judgements about how to classify