Need assistance in consolidation entries when presenting group financial statements for a company with a foreign wholly-owned subsidiary. Where do exchange variances go when eliminating inter-company balances?

If the balance represents a long term financing (Transactions and balances for which settlement is not planned in the foreseeable future) from the holding company then the exchange differences should be reflected in Other comprehensive income(Equity). But if the balance represents a normal business transactions between the holding company and its subsidiary then the exchange differences should be reflected in profit & loss.

IAS 21:
Differences arising on a monetary item that, in substance, forms part of an investment in a foreign entity (settlement neither planned nor likely to occur) should be recognised in equity until the disposal of the net investment, at which time they should be recognised as income/expense. [IAS 21.17]