Imagine a U.S. company that buys a factory in Mexico. The factory keeps its books in pesos, but the parent company reports to shareholders in U.S. dollars. How do we combine those peso numbers with the company’s dollar-based statements without hiding what’s really happening? This chapter explains the methods accountants use to convert foreign financial statements into a single reporting currency, and how the resulting adjustments can affect an investor’s view of profits, equity, and risk.