When converting the trial balance of an international subsidiary to the parent's currency, IFRS and U.S. GAAP are converged, except for:

Question

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Under both IFRS and U.S. GAAP, the procedures for converting the trial balance of an international subsidiary to the parent's currency are largely converged. However, they diverge on how to handle conversions when the subsidiary operates in a highly inflationary country.

When Converting the Trial Balance of an International Subsidiary to the Parent's