Foreign Ltd is a Queensland software developer that specialises in software that controls the operations of open cut mining. To exploit opportunities in the US market, the firm has established a wholly-owned subsidiary operating in Atlanta, Georgia. The operations of the subsidiary(Opencut Inc.)essentially involve the marketing of software initially developed in Australia but which is further developed by the US subsidiary to suit the special requirements of particular US customers. Foreign Ltd does not charge Opencut Inc. for the software successfully amended and marketed in the United States. At this stage no dividends have been paid by Opencut Inc:; however, it is expected that dividends will commence within 12 months, With respect to working capital, Opencut Inc. has a ‘revolving credit’ agreement (overdraft facility) with the bank of Georgia, which has been guaranteed by the Australian parent.
Discuss the process of translating the financial statement of Opencut Inc. for consolidation with Foreign Ltd.