Disposal of non-integral foreign operation clarified: rules on dividends, repatriation, partial disposals, and write-downs specified. Amendment to AS 11 defines disposal of non-integral foreign operations as sale, liquidation, repayment of share capital, or abandonment; treats dividends as disposal only if they return investment; excludes repatriation of accumulated profits from disposal unless constituting return of investment; includes only proportionate accumulated exchange differences on partial disposals; and states that write-downs are not partial disposals and do not trigger recognition of deferred foreign exchange gains or losses.
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Disposal of non-integral foreign operation clarified: rules on dividends, repatriation, partial disposals, and write-downs specified.
Amendment to AS 11 defines disposal of non-integral foreign operations as sale, liquidation, repayment of share capital, or abandonment; treats dividends as disposal only if they return investment; excludes repatriation of accumulated profits from disposal unless constituting return of investment; includes only proportionate accumulated exchange differences on partial disposals; and states that write-downs are not partial disposals and do not trigger recognition of deferred foreign exchange gains or losses.
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