AASB 121 The Effects of Changes in Foreign Exchange Rates 48-49: Disposal of a foreign operation: reclassify the cumulative translation differences to profit or loss when the disposal gain or loss is recognised, treat loss of control or loss of significant influence or joint control as full disposal, and on partial disposals re-attribute or reclassify only the proportionate share

What does 48-49 require?

When a foreign operation is disposed of, the translation differences built up in equity for it are recycled to profit or loss at the same time as the disposal gain or loss is recognised. Losing control of a subsidiary containing a foreign operation counts as a disposal even if a non-controlling interest is kept, as does a partial disposal of a joint arrangement or associate interest that leaves only a financial asset. The portion of cumulative differences attributed to non-controlling interests is derecognised on disposal of the subsidiary but not reclassified. On a partial disposal of a subsidiary without losing control, the proportionate share is re-attributed to non-controlling interests; in other partial disposals, only the proportionate share is reclassified to profit or loss. Disposal can occur through sale, liquidation, return of capital or abandonment, but a write-down for losses or impairment is not a partial disposal and triggers no reclassification.