What would be a logical first step that should be taken to restate foreign financial statements to conform to U.S.GAAP, assuming a four-column worksheet will be used to post debit and credit adjustments and reclassifications to arrive at U.S.GAAP statements?
A)Convert the foreign currency amounts to U.S.dollars.
B)Restate historical costs to current cost basis.
C)Re-order foreign financial statements to U.S.format.
D)Determine the amount of foreign exchange gains or losses.

Question

Quizplus · Accepted Answer

Re-ordering the foreign financial statements to the U.S. format is the logical first step because it provides the framework for the subsequent adjustments and reclassifications.

What Would Be a Logical First Step That Should Be