CASE STUDY #1 Marks 40 GANADO CORPORATION- Managing the Translational Exposure Ganado Corporation U.S.-based multinational parent company Required to report consolidated financial results according to U.S. GAAP in U.S. dollars Ganado China A wholly owned foreign subsidiary of Ganado Corporation Maintains its financial statements in Chinese yuan Ganado U.S. Wholly owned domestic subsidiary of Ganado Corporation Maintains its financial statements in U.S. dollars Ganado Europe Wholly owned foreign subsidiary of Ganado Corporation based in Germany Maintains its financial statements in euros.