Intercompany Foreign Loans on Consolidation

If Parent Company A provides a £1m loan to its USA subsidiary company B and the rate on the day is £1:$1.5. Company B does not retranslate this loan at year end where the rate becomes £1 :$1.7.

If preparing a consolidated statement of financial position I understand that the £1m loan between the companies must be cancelled out, however do I need to adjust my balance sheet for the higher payment company B will now have to make or do I ignore it as the balance is inter company.