Foreign Subsidiary Accounting: Functional Currency and Translation

Foreign subsidiary accounting takes two conversions before consolidation, local GAAP recast onto US GAAP first, then currency translation under ASC 830. The functional currency conclusion at ASC 830-10-45-2 sets every rate that follows, and the cumulative translation adjustment lands in other comprehensive income, not net income. Indinero’s CPA-led team owns the functional currency memo, the single-source rate table, and the monthly CTA rollforward inside one engagement with your bookkeeping and group tax position.