Elite Distributors Limited is a Canadian public company that has been undergoing rapid expansion. The company is based in a major Canadian seaport, and several years ago found it necessary to open a sales office in the United States to transact business directly in that country.

Elite also has a wholly owned subsidiary, located in Singapore, that manufactures one of the main products that Elite sells in Canada. Substantially all of the Singapore subsidiary’s sales are to Elite. There is a second (80% owned) subsidiary in the Republic of Ireland that was acquired in an attempt to diversify. This company sells exclusively through its own sales offices throughout Northern Europe, and has very few transactions with Elite, except for the regular payment of dividends.

Required

Recommend the appropriate accounting policies for Elite to follow with respect to each of these foreign operations. Support your recommendations.