USA Do I need a separate ledger?

[LoveThisJob]

I want to process certain foreign transactions in our US ledger (functional currency is USD).
These transactions were previously being processed under a different legal entity. Also I should add they are all Balance Sheet transactions (I know we will end up having some gain/loss on foreign currency transactions).

Do you see any reason why I would HAVE TO create a separate ledger in the foreign country's functional currency?

 

[bklynboy]

If they are foreign transactions of the same legal entity then I would not account for separately. I would only create a separate ledger if they are a different legal entity. This is no different than purchasing a foreign bond that pays interest in a foreign currency.

 

[Samir]

I second bklynboy's approach. You may need to create an account to help you account for any currency exchange issues, but that's about it.

 

[Counterofbeans]

I agree with bklynboy's comment, IF he's accurate that they are with the same legal entity. The way I'm reading that, however, seems like it's a different legal entity. And if that's the case, proceed with caution--you could have some issues from a tax perspective if you aren't careful

I'm also curious as to what you are referring to when you say, "in the foreign country's functional currency." That seems to suggest to me you have a different entity (wholly owned sub?) that is being consolidated?!?!?