Despite global economic improvement

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Reference no: EM132051108

Despite global economic improvement, we still see countries that suffer through periods of significant inflation (hyperinflationary) and a devaluation of their currency. If you are looking to acquire a company domiciled in such a country, what impact does it have on the possible transaction if the financial statements you are looking at are stated at traditional historical cost in local currency? You are the CFO of the acquiring company, how do you deal with the financial statements you are reviewing for purposes of the translation? Also, if the acquisition is successful, what would you need to do to fully consolidate a subsidiary in such a country in your future financial statements?

Reference no: EM132051108

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