Re-measurement is restatement of the foreign entity’s financial statements from the local currency that the entity used into foreign entity’s functional currency. Re-measurement is required only when the functional currency is different from the currency used to maintain foreign entity’s books and records. The treatment of re-measurement gain or loss in the consolidated financial statements.

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Chapter 12, Problem 12.13Q

To determine

Introduction:Re-measurement is restatement of the foreign entity’s financial statements from the local currency that the entity used into foreign entity’s functional currency. Re-measurement is required only when the functional currency is different from the currency used to maintain foreign entity’s books and records.

The treatment of re-measurement gain or loss in the consolidated financial statements.

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