CERTYNEX IFRS ACADEMY

The foreign subsidiary of the Marenne group closes its accounts two months before the parent. Between its closing date and the group's, the rate of its currency moved significantly. What must the group do for consolidation?

Use the subsidiary's statements as they stand, the difference in dates having to be without effect on consolidation.

Translate the subsidiary's statements at the parent's closing rate, with no other adjustment.

Adjust for the effects of the significant exchange rate movements that occurred between the two closing dates.

Defer the consolidation of the subsidiary to the following year, the dates not coinciding.