Foreign subsidiaries have a better understanding of financial performance with
I..financial statements in the home headquarter's currency
II..financial statement in the local currency
A) I
B) II
C) either I or II
D) I and II

Question

Quizplus · Accepted Answer

Financial statements in the local currency would provide foreign subsidiaries with a better understanding of their financial performance as they are operating within the local market and transacting in the local currency. This would reflect the impact of changes in exchange rates on their bottom line and provide a more accurate representation of their financial position. Financial statements in the home headquarter's currency may not reflect the local market conditions and exchange rate changes, therefore not providing an accurate picture of the subsidiary's financial performance.

Foreign Subsidiaries Have a Better Understanding of Financial Performance with