• The companies controlled by a holding company.

 Embedded terms in definition
 Holding company
 Referenced Terms
 Consolidated financial statements: A presentation of the financial position of a parent company and its Subsidiaries as one entity in a financial statement. See also: Annual Report.

 Eurocurrency market: The money market for borrowing and lending currencies that are held in the form of deposits in banks located outside the countries of the currencies issued as legal tender.The market for short-term bank deposits denominated in U.S. dollars or other easily convertible currencies. International equivalent of the domestic money market. The portion of the Euromarket that provides short-term, foreign-currency financing to Subsidiaries of MNCs.

 Fasb no. 52: The U.S. accounting standard which was replaced by FASB No. 8. U.S. companies are required to translate foreign accounts by the current rate and report the changes from currency fluctuations in a cumulative translation adjustment account in the equity section of the balance sheet.Statement issued by the FASB requiring U.S. multinationals first to convert the financial statement accounts of foreign Subsidiaries into their functional currency and then to translate the accounts into the parent firm's currency using the all-current-rate method.

 Foreign currency translation: The process of restating foreign currency accounts of Subsidiaries into the reporting currency of the parent company in order to prepare consolidated financial statements.

 Netting: Reducing transfers of funds between Subsidiaries or separate companies to a net amount.Is a process used by institutions and clearinghouses to determine the marginal risks and demands for funds.

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