Foreign Exchange and Subsidiary accounting


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Dear All,

I have a quick query below
Our Organization is planning to establish GAHP America a separate legal entity which will be subsidiary for GAHP Switzerland (GAHP America will have same Board Members as GAHP Switzerland), I would like to request for some suggestions and recommendations. My queries are as follows:
  • Is GAHP obligated to prepare consolidated financial statements?
  • Do we have to maintain account of GAHP America as per US GAAP
  • For US based employee (US Citizen) who will work for GAHP, will they be considered as employee of GAHP America or GAHP Switzerland? If they are considered as employee of GAHP America, can we book their payroll expenses to GAHP Switzerland as we need to allocate cost to our different donor in GAHP Switzerland?
  • If GAHP Switzerland pays all employee cost of GAHP America, will it be considered as advance from GAHP Swiss to GAHP America which will be eliminated when consolidated is prepared?

  • If Swiss based company gives cash advance to US based company in USD which will be settled in next FY , will it be considered as monetary assets in books of Swiss Company and has to be translated using exchange rate of balance sheet date?

  • Eg Swiss company gave USD 10000 as and advance to US company for certain work which will be settled in next financial years.

  • Please provide your suggestions and the journal entries in both books of accounts
 
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kirby

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This is “a quick query” ???:p


If you are going to engage a US acctg firm to audit your US books, might as well engage them now and address these questions to them now.

Or to save cost, you can accept answers from people here that you don’t know and have no idea of their qualifications. Usually people here know their stuff……usually.

“Do you feel lucky?” (from movie Dirty Harry)
 
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