The Vauclair group disposes of the whole of its foreign subsidiary, owned at 100%. The translation reserve stood at 140,000 at the opening date and increased by 40,000 up to the date of disposal. The gain on disposal before reclassification is 500,000 (case datum). Calculate the amount reclassified to profit or loss and the total gain on disposal.
- Translation reserve at the opening date
- 140,000
- Translation difference up to disposal
- 40,000
- Gain on disposal before reclassification
- 500,000