I want to make sure I understand this- so I know how to separate the classifications of held2, a4, and trading securities. And I can also distinguish between those & using the EQ method versus the acquisition method. BUT- am I right in my assumption that when we move on to the situation where we are given, for example, a US parent owns a subsidiary in the UK, and we are translating the subsidiary’s financial statements- I know how to use the temporal versus equity method if asked to get “the remeasured balance sheet” or “remeasured income stament”…the examples I came across asking for the restated or remeasured financial statements are really easy to me.
- But now that we have the dollar amount of say- PPE- from this sub- don’t we have to add it to the parent’s balance sheet? (I ask because I feel like I haven’t come across many problems that mix knowing the acquisition method with foreign translation…want to make sure I understand what is really going on)
- there is no actual ‘restated subsidiary balance sheet’ that gets produced in real life right?
Sorry for wordiness!
Thanks!