AASB 121 The Effects of Changes in Foreign Exchange Rates 32-34: Net investment exchange differences: recognise them in either party's own statements through profit or loss but in OCI in group statements, reclassifying on disposal, and where books are kept in another currency remeasure into the functional currency as if recorded there

What does 32-34 require?

Differences on a monetary item forming part of the net investment in a foreign operation are taken to profit or loss in whichever party's own separate or individual statements they arise. In statements combining both (by consolidation or equity method) they go to other comprehensive income instead and are recycled to profit or loss when the net investment is disposed of; this applies whichever currency the item is in, with any difference in the individual statements reclassified to OCI on consolidation. Where an entity's ledgers run in some non-functional currency, all amounts are converted into the functional currency on the basis that would have resulted had they been recorded in it originally.