Question
Pheng Company has two foreign subsidiaries. One is located in France, the other in Germany. Pheng has determined the British pound is the functional currency
Pheng Company has two foreign subsidiaries. One is located in France, the other in Germany. Pheng has determined the British pound is the functional currency for the French subsidiary, while the U.S. dollar is the functional currency for the German subsidiary. Both subsidiaries maintain their books and records in their local currency (Euro). What method(s) will Pheng use to convert its French subsidiary's and its German subsidiary's financial statements into U.S. dollars?
French subsidiary German subsidiary
a. remeasure and translate translate
b. remeasure remeasure and translate
c. remeasure and translate remeasure
d. translate remeasure
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