In October 2008 NIKE completed the acquisition of 100% of the common shares of Umbro, a leading United Kingdom-based global soccer brand. The acquisition price was approximately $576 million, and since the acquisition Umbro has operated as a wholly owned NIKE subsidiary. Umbro prepares its financial statements under IFRS and the amounts are denominated in British pounds.
REQUIRED:
Describe some of the difficulties faced by NIKE each year when it consolidates the financial statements prepared by Umbro into its overall consolidated financial statements.