The parent Quillan lent 300,000 to its foreign subsidiary. Case convention: this monetary loan is not part of the net investment. The rate moves from 0.90 to 0.94 euro per 1 dollar, giving a difference of 12,000 in the parent's statements. Post the entry for this difference, which stays in consolidated profit or loss.
- Intragroup loan in dollars
- 300,000
- Exchange difference on the loan
- 12,000