Consolidating Foreign Subsidiaries

<p>The world is becoming more interconnected due to non-stop advances in communication and transportation technologies, facilitating cross-border flows of investment and equity capital.</p>

<p>The concept of foreign direct investment (FDI), which is defined as an investment in the form of a controlling ownership in a business in one country by an entity based in another country, has become a cornerstone in today&rsquo;s global economic system.</p>

<p>Accordingly, the number of businesses that have operations in multiple countries has increased significantly, and the fair presentation of foreign subsidiaries&rsquo; financial statements to the parent entity&rsquo;s stakeholders is needed.</p>

<p>The hallmark of consolidated foreign subsidiaries is that their financial statements are presented in a different currency from their parent&rsquo;s presentation currency.</p>

<p>This course explains and illustrates the accounting processes for translating foreign subsidiaries financial statements step-by-step, including consolidation criteria, types of financial statements currencies, the proper accounting treatment for the resulting translation gain/(loss), and the currencies of hyperinflationary economies.</p>

<p>This course uses practical cases and examples that simplify the theory behind US GAAP standard ASC Subtopic 830-30 &ldquo;Translation of financial statements&rdquo; and IFRS standard IAS 21 &ldquo;The Effects of Changes in Foreign Exchange Rates&rdquo;, highlighting the main differences between them.</p>

<p>Course Key Concepts:<b> GAAP- ASC 830 &ndash; foreign Currencies &ndash; foreign Subsidiaries &ndash; foreign currencies -translation &ndash; IFRS – IAS 21 &ndash; other comprehensive income (OCI) – hyperinflationary economies &ndash; consolidated &ndash; consolidation.</b></p>