How does a weakening $US affect the consolidated balance sheet of a company with foreign subsidiaries?
There can be many impacts of weakening US Dollar, let’s discuss them below:
If USD vs Euro is .90 and a subsidiary in Europe is doing business of 1000 Euro it will be added as $1,111.11 in consolidated statement but if US$ weakens and new rate is USD vs Euro.85 so new addition to balance sheet would be $1,176.47
Hope this helps!! Let me know if more points are needed.
How does a weakening $US affect the consolidated balance sheet of a company with foreign subsidiaries?
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