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Unformatted text preview: Consolidation of Foreign Subsidiaries Two challenges: (1) Foreign accounting practices differ from American GAAP (2) Subsidiary statements may be in foreign currency and need translation Results in a foreign currency translation adjustment International Standards Most accounting methods are consistent throughout the world Differences do exist for: Inventory LIFO method of inventory not used in the U.K. Goodwill In Germany and Japan, the account is amortized; not in the U.S. Research & Development costs Capitalized in Japan; expensed in the U.S....
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This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.
- Spring '11
- Financial Accounting