CERTYNEX IFRS ACADEMY

The Moreau group, whose presentation currency is the euro, acquires an American subsidiary. The goodwill, determined under IFRS 3, is 2,000,000 dollars. How does IAS 21 treat it?

As an asset of the foreign operation, expressed in dollars and translated at the closing rate.

As an asset of the parent, expressed in euros, at the rate of the date the subsidiary was acquired.

As a non-monetary asset of the parent, translated at the average rate for the year.

As a monetary item of the subsidiary, the exchange difference of which goes to profit or loss at each closing date.