_____ Before a foreign subsidiary's financial position and results of operations can be reported to the stockholders of the U.S. parent company, it is necessary to
A) Restate to U.S. GAAP and then translate.
B) Translate and then restate for foreign inflation.
C) Translate and then restate to U.S. GAAP.
D) Restate for foreign inflation, restate to U.S. GAAP, and then translate.
E) None of the above.

Question

Quizplus · Accepted Answer

Restating to U.S. GAAP before translation is necessary because the financial statements of the foreign subsidiary need to be in a format that is consistent with U.S. accounting standards for the consolidated financial statements of the U.S. parent company to be accurate and compliant.

_____ Before a Foreign Subsidiary's Financial Position and Results of Operations