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Accounting Question:
Wahl Company's consolidated financial statements include two wholly owned subsidiaries. One subsidiary is located in Australia and the other in France. The functional currency for the Australian subsidiary is the U.S. dollar. The European euro is the functional currency for the subsidiary located in France. Discuss:
1. The objectives of translating a foreign subsidiary's currency
2. How gains and losses arising from the translation or measurement of each subsidiary's financial statements are measured
3. The indicators listed in FASB 52 that identify economic factors to be considered, individually and collectively, in determining the functional currency for a particular subsidiary
Please include at least 3 references.
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