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Consolidating Foreign Subsidiaries

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Before starting this self study program, please go through the instructional document.


  • Consolidation Criteria
    4 mins
  • Controlling Financial Interest
    6 mins
  • Determining the Functional Currency Under US GAAP
    12 mins
  • Remeasurement Method
    37 mins
  • Acquisition of a foreign subsidiary
    50 mins
  • Highly Inflationary Economies
    79 mins

Course Description

The world is becoming more interconnected due to non-stop advances in communication and transportation technologies, facilitating cross-border investment and equity capital flows.

The concept of foreign direct investment (FDI), which is defined as an investment in controlling ownership in a business in one country by an entity based in another country, becomes a cornerstone in today's global economic system.

Accordingly, the number of businesses that have operations in multiple countries has increased significantly, and the fair presentation of foreign subsidiaries' financial statements to the parent entity's stakeholders is needed.

The main obstacle facing consolidating a foreign subsidiary's financial statements is that the subsidiary's financial statements are presented in a different currency from their parent's presentation currency.

Key topics: 

This CPE webinar for CPAs course explains and illustrates the following:

  • Accounting processes for translating foreign subsidiaries' financial statements step-by-step, 
  • Consolidation criteria
  • Types of financial statements currencies
  • Proper accounting treatment for the resulting translation gain/(loss)
  • The currencies of hyperinflationary economies

This course uses practical cases and examples that simplify the theory behind US GAAP standard ASC Subtopic 830-30 "Translation of financial statements" and IFRS standard IAS 21 "The Effects of Changes in Foreign Exchange Rates," highlighting the main differences between them.

Who should attend: 


Finance Professional

CPAs in Industry

Finance Director

Vice President Finance

Accounts Director

VP Accounts

Sr. Acccountant

Tax Accountant

Accounting Managers

Corporate Tax staff

Corporate Accountant

Management Accountant

Learning Objectives

  • To identify consolidation criteria.
  • To examine the process of translating subsidiaries' foreign currencies.
  • To study the accounting processes for translating the currencies of hyperinflationary economies.
  • To recognize the differences between US GAAP and IFRS in consolidating foreign subsidiaries.

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Bookkeepers & Accountants & Tax Preparers
  • Chartered Professional Accountant
  • CPA (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Entrepreneurial CPA
  • Young CPA