Answer: Converting foreign GAAP to the parent company GAAP; Translating currency.
Step-by-step explanation:
A foreign direct investment is simply an investment that is made by a particular individual or firm in a particular nation even though the interests of the business are being located in another nation.
The financial reporting issues would arise as a result of making a foreign direct investment are the conversion of foreign GAAP to the parent company GAAP and the translation of currency.