I might be missing something with regards to what net asset exposure is. I understand how to convert a sub’s balance sheet, starting by translating the assets, then the liabilities, then EQ is a plug to balance the equation A=EQ+LIA. I know this makes me seem like I don’t understand accounting at all- maybe I’m just blanking on something- but if the formula above must always hold then why is it that we very often test for weather or not the company has a ‘net asset exposure’ meaning A-LIA is positive…
Second question- does anyone have a really good summary for solving for retained earnings & the CTA & remeasurement g/l? Like I know there’s a general rule to start with the balance sheet using the current method for some reason?
Thanks…