[csuth1090]

Hi,

So I understand that the reporting currency for the U.S Parent is the U.S. Dollar. When the foreign subsidiary in mexico for example reports in pesos, all you need to do it translate.

For Remeasurement I am a little confused. I get that you would need to remeasure if the Mexican subsidiary uses Euros. So you would remeasure from euros to pesos and then translate back to the U.S. parent company’s reporting currency.

One thing I am confused about is the becker point on remeasuring. You remeasure if the foreign subsidiary’s functional currency is the reporting currency? To me, that means the mexican subsidiary is reporting in U.S. dollars. Why would there need to be any re measurement at all if both the parent and the subsidiary are in U.S. dollars?