Foreign currency translation option allows adding exchange differences to asset cost or amortising via translation reserve. Provision permits an enterprise, for specified accounting periods, to irrevocably elect retrospective treatment for exchange differences on long term foreign currency monetary items: differences related to acquisition of depreciable capital assets may be added to or deducted from asset cost and depreciated over the asset's remaining life; other differences may be accumulated in a Foreign Currency Monetary Item Translation Difference Account and amortized over the remaining term but not beyond the transitional cutoff. Previously recognized profit and loss amounts must be reversed to asset cost or transferred to the Translation Difference Account with offset to general reserve, and disclosure of the option and unamortized amount is required.