Enter your email address to subscribe to this website and receive notifications of new contents by email Join 7, other subscribers. For example An Indian Company Z invested his money in USA's Y Company and Y company has become the subsidiary company.

This investment was in USA dollars. Y company's all expenses and incomes are in USA Dollars.

But Indian Z company deals in Indian currency. Now, how will Indian Z company consolidate with Y USA subsidiary company.

Pre-acquisition equity will be translated at historical rate Subsidiary company's pre-acquisition equity will be translated at historical rate. Then share capital was translated at RS.

Foreign currency reporting and cumulative translation adjustments (CTA): PwC

Rs is the capital of subsidiary company. Functional currency issues SFAS 52 introduced the concept of functional currency, defined as "the currency of the primary economic environment in which the entity operates; normally, that is, the currency of the environment in which an entity primarily generates ifrs forex translation expends cash.

There are different transactions. All these Transactions are often translated at the spot rate, i.

Accounting corporate accounting Financial forex. Comments on this Website In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

Consolidation with Foreign Subsidiaries | Accounting Education

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The Importance Of Other Comprehensive Income

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