Hi Friends,
We are having 3 legal entities.
1 in US both accounting and reporting currency is USD.
2 Company in India - Accounting and Reporting currency is INR and USD Respectively.
3 Consolidation and Elimination company - Accounting and Reporting currency is INR and USD Respectively
We have an investment from Indian Entity in US entity of 1000 USD as on 01st January at the time the rate was 65 INR per USD.
So the accounting entries are as follows:
India
Investment in US - 65000 INR DR
To Bank A/c - 65000 INR CR
USA
Bank A/c - 1000 USD DR
TO Share Capital - 1000 USD CR
Assuming there were no transactions throughout the month, at the month end when we revalue the books of accounts. My Share Capital of USA should get knocked off against investment of India.
The problem is In India also there is s share capital of 100000 INR
How to Perfom this transaction in consolidation and elimination.