LaSalle Ltd

question 13

Multiple Choice

LaSalle Ltd. ,a Canadian company has a subsidiary in Brazil that produces a component used in LaSalle's manufacturing.All of the components that the subsidiary produces is sold to LaSalle.The subsidiary also purchases most of the raw materials used in its production from LaSalle.Both companies use the Canadian dollar as its functional currency.Which of the following statements is true?

• A)The current rate method of translation should be used.
• B)Nothing needs to be done with the subsidiary's financial statements prior to consolidation.
• C)The subsidiary's financial statements need to be re-measured into the functional currency prior to consolidation.
• D)The subsidiary is considered to be an extension of the parent company and consolidation is not required.

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Definitions:

Plaintiff

A plaintiff is an individual or entity who initiates a lawsuit against another party, known as the defendant, in a court of law seeking remedial relief or damages.

Jet

A high-speed aircraft powered by jet engines that is capable of flight at speeds greater than the speed of sound.

Offeror Dies

In contract law, this refers to the scenario where the individual making an offer (offeror) passes away before the offer is accepted, potentially affecting the validity of the offer.

Offer Terminates

Offer terminates refers to the point at which a proposal for a contract or agreement is withdrawn or becomes invalid, ending the possibility of acceptance.