Disposal of foreign operations refers to the process of selling or terminating a subsidiary, branch, or joint venture that operates in a foreign country. This process can arise from strategic decisions made by a company due to various factors such as financial performance, changes in market conditions, or shifts in corporate strategy. The disposal affects how foreign currency transactions are reported in financial statements and can lead to gains or losses that must be recognized in the entity’s financial records.
congrats on reading the definition of Disposal of Foreign Operations. now let's actually learn it.