A U$.$S$.$ company owns a foreign subsidiary. To prepare consolidated financial statements, when would the parent company convert the foreign subsidiary$$s accounts into U$.$S$.$ GAAP?

Multiple Choice

Prior to the beginning of the translation process

After translation, but prior to consolidation

After consolidation, but prior to reporting

No adjustments are necessary, since most foreign countries already use GAAP.

No adjustment should be necessary. Foreign subsidiaries are required by the SEC to have an accounting system that is consistent with GAAP.