A parent company uses U.S. GAAP and presents its financial statements in U.S. dollars. It has a subsidiary in Singapore whose books are maintained in Singapore dollars, following IFRS. The subsidiary's accounts are included in the consolidated financial statements of the parent:

Question

Quizplus · Accepted Answer

When a parent company consolidates its financial statements, it must convert the subsidiary's financials to the parent's presentation currency (U.S. dollars in this case) and accounting framework (U.S. GAAP). This ensures consistency and comparability within the consolidated financial statements.

A Parent Company Uses U