Saltaire Co. is a French company located in Paris. Primer Corp., located in New York City, acquires Saltaire Co. Saltaire has the Euro as its recording currency and the Swiss Franc as its functional currency. Primer has the U.S. dollar as its recording currency and the U.S. dollar as its functional currency.Required:a) The year-end consolidated financial statements will be prepared in which currency?b) Explain which method is appropriate to use to use at year-end: Translation or Remeasurement?
What will be an ideal response?
a) The consolidated financial statements will be reported in Primer's functional currency - the U.S. dollar.
b) Saltaire's financial statements will need to be remeasured first from the Euro to the Swiss Franc. Then the financial statements' valued in the Swiss Franc will be translated to the U.S. dollar.
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