Dear students, to consolidate the statements prepared in foreign currency with those prepared in local currency, we first translate from foreign currency and then consolidate after. The translation may lead to a gain or a loss on translation. This is reported in the profit or loss statement. All other procedures are the same: add items of assets and liabilities line by line and remember to show the equity controlled by the parent and the portion belonging to the Non-Controlling Interests, if any as well as the intra-company trading where you need to consider downstream transactions (parent selling to foreign operation) and upstream transactions (foreign operation =subsidiary selling to parent).