Asked by
Jhasmin Tonelada
on Dec 10, 2024
Verified
Dilty Corp. owned a subsidiary in France. Dilty concluded that the subsidiary's functional currency was the U.S. dollar.What must Dilty do to ready the subsidiary's financial statements for consolidation?
A) First translate, then remeasure them.
B) First remeasure, then translate them.
C) State all of the subsidiary's accounts in U.S. dollars using the exchange rate in effect at the balance sheet date.
D) Translate them.
E) Remeasure them.
Functional Currency
The currency of the primary economic environment in which the entity operates, typically used in measuring and reporting its financial results.
Remeasure
The process of adjusting the value of a financial instrument or asset to reflect its current market value.
Financial Statements
Structured reports that detail the financial activities and condition of a business, including the balance sheet, income statement, and statement of cash flows.
- Ascertain the primary currency utilized in financial accounts and its relevance in financial statement presentation.
- Analyze the effects of using the U.S. dollar as the functional currency on the consolidation process.
Verified Answer
BA
Learning Objectives
- Ascertain the primary currency utilized in financial accounts and its relevance in financial statement presentation.
- Analyze the effects of using the U.S. dollar as the functional currency on the consolidation process.