RE: Accounting for Foreign Subsidiary
Hello, we currently have OneWorld and we are setting up Chinese company under our parent company. The Company’s operational activity takes place in RMB (Chinese local currency). We would like to explore ways to be able to set up books in local currency and run consolidation processes at the end of the fiscal month. Do you know the best way to achieve this? Thank you for your help!
Here is a sample subsidiary structure in Oneworld, in this structure subs are rolling up to the parent sub ie final consolidation will be in Parent sub’s base currency. If you want different currency consolidation then as Oliver mentioned you will need to setup multibook accounting, in other words you are keeping two different sets of accounting books/ledgers.