27 June 2008
Holding Co is preparing accounts in USD and Subsidiary is preparing accounts in Euro. The subsidiary have borrowed USD 70 Million Loan from HSBC and they have recored in their books considering the exchange rate on transaction which is amounting to 69.8 million. While consolidating the accounts, What is the amount to be considered in the consolidated accounts. Can we take directly USD 70 million or as usual convert Euro 69.8(as in the books of subsidiary)as on year end.