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The process of expressing a subsidiary's financial statement amounts denominated in a foreign currency into amounts measured in the reporting currency of its parent company is referred to as:
A. redenomination of financial statements.
B. foreign currency translation.
C. currency consolidation.
D. foreign currency transaction.
Translation of a foreign entity's financial statements into the reporting currency of a domestic entity is typically done
Question A. to determine if the foreign entity is properly applying IFRS.
Question B. because the domestic entity has economic losses due to transactions denominated in the foreign entity's currency.
Question C. to enable a parent company to include its foreign subsidiary's financial statements in its consolidation.
Question D. to determine if the foreign entity is more profitable than the domestic entity.
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