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Translation or accounting exposure outcome from the conversion or translation of foreign currency denominated financial statements of foreign subsidiaries and affiliates into the residence currency f the parent. This is required to prepare consolidated financial statements for all firms as nation law demands. The objective is to have all operations worldwide stated in the same currency tars for comparison purposes. Management usually utilizes these translated statements to judge the performance of foreign affiliates and their personnel on the very same currency terms as the parent itself.
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