When consolidating foreign subsidiaries,the foreign subsidiary's financial numbers must be translated into the parents' currency unit.Under U.S.GAAP if the foreign subsidiary is a self-contained unit the

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The current rate method is used when foreign subsidiaries are self-contained units. Under this method, assets and liabilities are translated at the current exchange rate, while equity and income statement items are translated at the historical rates. This method is used to reflect the current economic conditions and positions of the foreign subsidiary in the parent's currency unit. Therefore, choice A is the best choice.

When Consolidating Foreign Subsidiaries,the Foreign Subsidiary's Financial Numbers Must Be