Question

Simon Company has two foreign subsidiaries. One is located in France, the other in England. Simon has determined the U.S. dollar is the functional currency for the French subsidiary, while the British pound is the functional currency for the English subsidiary. Both subsidiaries maintain their books and records in their respective local currencies. What methods will Simon use to convert each of the subsidiary's financial statements into U.S. dollars?
A. Translation Translation
B. Remeasurement Remeasurement
C. Remeasurement Translation
D. Translation Remeasurement

Answer 1

Answer: Translation Remeasurement

Explanation:  Remeasurement can be stated as the re-evaluation of worth of a tangible asset or foreign medium of exchange on a institution's statements.

It is the process of setting up the worth of an commodity and is utilized across a few situations.

Therefore in this case Translation Remeasurement is the method used by Simon to convert each of the subsidiary's financial statements into U.S. dollars.

The correct option in this case is (d)