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 them, then remeasure them.
B) first remeasure them, 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.

Question

Quizplus · Accepted Answer

When the functional currency is the U.S. dollar, the subsidiary's financial statements must be remeasured into the functional currency (U.S. dollar) from the local currency.