A U.S. parent owns a subsidiary in the U.K. The subsidiary purchases equity securities for cash. How does this transaction affect the subsidiary's exposure to remeasurement or translation gains or losses?

Question

Quizplus · Accepted Answer

The transaction does not affect the subsidiary's exposure to remeasurement or translation gains or losses because the equity securities are purchased for cash, which is a functional currency transaction.

A US Parent Owns a Subsidiary in the U