describe the accounting treatment of the foreign currency reserve cu 8 and the excha 612664

Disposals or partial disposals of foreign operations

On Dec 31, 01, entity E holds 80% of the shares of entity F (which is a foreign subsidiary). F”s financial statements are translated according to the current rate method. Exchange differences of CU +10 have been recognized in other comprehensive income from the acquisition date until Dec 31, 01. Thereof, CU 8 have been attributed to the foreign currency reserve and CU 2 to the non-controlling interests.

Version (a)

On Jan 01, 02, E sells its entire interest in F.

Version (b)

On Apr 01, 02, a dividend of CU 5 is declared. 80% of that amount is paid to E on the same date.

Version (c)

On Jan 01, 02, E sells a part of its interest in F. The sale leads to a reduction of E”s interest in F to 60%. However, E does not lose control of F.

Version (d)

On Jan 01, 02, E sells a part of its interest in F. The sale leads to a reduction of E”s interest in F to 40%, which means that E loses control over F.

Required

Describe the accounting treatment of the foreign currency reserve (CU 8) and the exchange differences attributed to the non-controlling interests (CU 2) in E”s consolidated financial statements as at Dec 31, 02.