FASB Issues ASU Related To Parent’s Accounting For The Cumulative Translation Adjustment
The FASB has issued ASU 2013-05 titled Foreign Currency Matters
(Topic 830) - Parent’s Accounting for the Cumulative Translation
Adjustment upon Derecognition of Certain Subsidiaries or Groups of
Assets within a Foreign Entity or of an Investment in a Foreign Entity.
The ASU is intended to resolve diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies
to the release of the cumulative translation adjustment into net income
when a parent either sells a part or all of its investment in a foreign
entity or no longer holds a controlling financial interest in a
subsidiary or group of assets that is a nonprofit activity or a business
(other than a sale of in substance real estate or conveyance of oil and
gas mineral rights) within a consolidated foreign entity.