A £ functional company gets a $100m loan from a Group company. The Group requires reporting in $. The £ company uses the loan to buy £50m of fixed assets when the exchange rate is 2:1. At year end the the exchange rate is 4:1 (say). What is the £ balance sheet and P&L at year end? And when the company has to report its figures to Group in $, what is the $ balance sheet and P&L.
G Watson
16th Jun 2006
0
£ functional company reporting to Group in $
£ functional company reporting to Group in $