Business, 18.03.2021 02:10 jdeelc

An American company has an overseas subsidiary that builds its products for sale in the United STates. If that subsidiary shows large unhedged FX translation gains, what is the effect on their US consolidated income? a. none, since the translation gains go to a reserve account.
b. Since integrated subsidiaries use the temporal method, gains flow through to consolidated income
c. since integrated subsidiaries use the current rate method, there is no effect
d. gains flow through to consolidated income, since integrated subsidiaries use the current rate method (market to market)

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An American company has an overseas subsidiary that builds its products for sale in the United STate...

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