What are the objectives of a foreign subsidiary's financial statement?
Answers:
I'm not sure of what you're asking. The objectives of preparing a subsidiary's financial statements (fs) are matching as those of preparing a parent co's fs. Every co. should prepare its fs. If you intended what are the objectives of consolidating a foreign subsidiary's fs, I can lone quote the FASB:
Purpose of Consolidated Financial Statements
176. The Board concluded that the purpose of consolidated financial statements of business enterprise and of not-for-profit organization is to report the financial position, results of operation, and lolly flows of a reporting entity that comprises a parent and its affiliates essentially as if all of their assets, liability, and comings and goings be held, incurred, and conducted by a single entity near one or more branches or divisions (paragraph 7). That conclusion affirms the
conclusion of ARB 51, which focused on consolidated financial statements of for-profit companies that issue voting ownership shares. Paragraph 1 of ARB 51 said, “The purpose of consolidated statements is to present, primarily for the benefit of the shareholders and creditors of the parent company, the results of operation and the financial position of a parent company and its subsidiaries essentially as if the group be a single company near one or more branches
or divisions.”
You can read more of this thesis at the association below.