Question

If the european subsidiary of a u.s. firm has net exposed assets of 200,000, and the euro increases in value from $1.22/ to $1.26/ the u.s. Firm has a translation?

Answer 1

If the European subsidiary of a US company has published net assets of €200,000 and the euro rises from $1.22/€ to $1.26/€, the US company would incur a loss of $8,000 in translation.

In the corporate world, a subsidiary is a company that belongs to another company, usually called a parent company or holding company. The parent company retains control of the subsidiary. That is, the parent company owns or controls more than half of its shares.

A European company – also known as SE  – is a type of public limited company that allows a single set of rules to operate in different European countries.

In accordance with the principle of balance, the content and form of EU action must not exceed what is necessary to achieve the objectives of the Treaty. Page 3. 3. Subsidiarity is who should act. Proportionality is about the types of measures that should be implemented.

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