When preparing a foreign affiliate's financial statements for consolidation, the first step is to:
A)review the regulations of the country in which the affiliate is located to determine if consolidation is legal.
B)adjust the financial statements to conform to generally accepted accounting principles.
C)determine the affiliate's functional currency.
D)translate the financial statements into the parent's currency.

Question

When preparing a foreign affiliate's financial statements for consolidation, the first step is to:
A)​review the regulations of the country in which the affiliate is located to determine if consolidation is legal.
B)​adjust the financial statements to conform to generally accepted accounting principles.
C)​determine the affiliate's functional currency.
D)​translate the financial statements into the parent's currency.

Quizplus · Accepted Answer

The Answer of When preparing a foreign affiliate's financial statements for consolidation, the first step is to:
A)​review the regulations of the country in which the affiliate is located to determine if consolidation is legal.
B)​adjust the financial statements to conform to generally accepted accounting principles.
C)​determine the affiliate's functional currency.
D)​translate the financial statements into the parent's currency.

When Preparing a Foreign Affiliate's Financial Statements for Consolidation, the First