Question

Assume that ABCO is a Us multinational corporation its foregin subsidiaries must report income in their respected countries, according to GAAP in those countries. How must ABCO report its consolidated financial statements

Answer 1

Answer:

According to the origin of the corporation, in order to prepare the consolidated financial statements it is necessary to apply the generally accepted principles in the USA.

Explanation:

The consolidated financial statements are those in which the assets, liabilities, net worth, income, expenses and cash flows of the company and its dependents are presented as if it were a single economic entity. This resource validates the premise that accounting helps to make strategic decisions, since the consolidated one allows a better perspective of the financial health of the business.