IAS 21 The Effects of Changes in Foreign Exchange Rates requires that any exchange differences on translation of a foreign operation's financial statements should be accumulated in a separate component of equity. On disposal of such a foreign operation, the cumulative amount of exchange differences held in respect of that operation should be?

1/Reclassified to profit or loss as part of the gain or loss on disposal

2/Left in a separate component of equity

3/Transferred to retained earnings

4/recognized as an extraordinary item in the statement of profit or loss