On December 31, 2017, Carter Corp.a foreign subsidiary of Barter Corp., had a bank overdraft of $20,000 on one of its bank accounts.Bank overdrafts are an integral part of Carter's cash management policy.
1) Prepare the journal entry to convert the foreign subsidiary from its IFRS financial statements to U.S.GAAP financial statements.
2) Briefly explain why this journal entry is required.

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The Answer of On December 31, 2017, Carter Corp.a foreign subsidiary of Barter Corp., had a bank overdraft of $20,000 on one of its bank accounts.Bank overdrafts are an integral part of Carter's cash management policy.
1) Prepare the journal entry to convert the foreign subsidiary from its IFRS financial statements to U.S.GAAP financial statements.
2) Briefly explain why this journal entry is required.