Final Project Memo.docx Advanced Accounting Southern New Hampshire University Posey is

Final Project Memo.docx  Advanced Accounting  Southern New Hampshire University  Posey is an U.S. dollar-based company. They acquired Stargell Corporation, which is a foreign subsidiary in December 20x5.  Stargell Corporation uses non-U.S. functional currency.  In order to prepare a consolidated financial statement that includes a foreign subsidiary, you will need to translate the foreign subsidiary™s financial statements into the reporting currency of the parent. There are two methods to do this. The first method of currency translation is the current rate method. This method is used to  translate self-sustaining operations. The second method is the temporal method. This method is used to translate integrated operations. To complete the consolidation worksheet, several calculations must be done.  Identify and calculate four non-controlling interest figures that will be included within the consolidation process.  Exchange rates vary depending on the account type. Revenues and expenses use a weighted average exchange rate on the consolidated worksheet. Assets and liabilities; however, uses the current exchange rate. The stockholder™s equity section, on the other hand, uses the historical exchange rate on the consolidated worksheet.  If the conversion on the financial statements results in a translation adjustment, the parent company has to report the profit or loss in the other comprehensive income section of their financial statements.  Consolidated financials must be completed on an annual basis. Th