I wanted to know why do we translate the F/S of our subsidiaries who are not independent & whose functional currency is the parent co’s., local currency?
Why I had this doubt?
Because functional currency (FC) means the currency in which the business is being conducted primarily, so, if USD(say) is the FC & the parent co’s., location is USA, why the co., needs translation?
It would be overwhelming if someone can explain why. Thank you!