To prepare consolidated financial statements when a U.S.parent company has an international subsidiary,the international subsidiary's financial statements must be translated into U.S.dollars.

Consolidated Financial Statements

Financial reports that combine the accounting information of a parent company with its subsidiaries into one document.

International Subsidiary

An international subsidiary is a company that is wholly or partially owned by another company, called the parent company, and is located in a country different from where the parent company is situated.