International Businesses International Bearing Corporation incurs significant costs each year when it translates the financial statements of its international subsidiaries from foreign currency units to U.S. dollars and converts the statements from the foreign accounting procedures to those used in the United States.

a. Which accounting concept leads to foreign subsidiaries being included in parent company financial statements?

b. Which accounting concept results in the parent and subsidiary using similar accounting procedures for similar transactions?

c. Which accounting concept requires that, once a subsidiary’s financial statements have been included in those of the parent, this practice will continue in the future?

d. Which accounting concept allows a foreign subsidiary’s financial statements to be excluded from those of the U.S.
parent under certain conditions?

e. During the period, the parent shipped a large quantity of its main product to one of its international subsidiaries, making a profit on the intercompany sale. The subsidiary is expected to resell the product to its customers, but has not yet done so. Which concepts require an adjustment to the financial statements to remove the profit recorded by the parent?