Difference between consolidated consolidating financial statements Andhraaunty sex

01-Oct-2020 19:54

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When preparing consolidated financial statements that include a foreign subsidiary, the financial statements of the foreign subsidiary need to be translated into the reporting currency of the parent.

The temporal method should be used to do the currency translation.

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You can also specify the account in the consolidated company to which exchange differences are posted.If the parent does not actively participate in the subsidiary’s operating, investing, and financing activities, the subsidiary is self-sustaining.