To prepare consolidated financial statements when a company has an international subsidiary,the international subsidiary's financial statements must be translated into U.S.dollars.

Question

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Consolidated financial statements must be presented in a single currency, usually the currency of the parent company. Therefore, if the international subsidiary's financial statements are prepared in a different currency, they must be translated into the parent company's currency (e.g. U.S. dollars) using appropriate exchange rates.

To Prepare Consolidated Financial Statements When a Company Has an International