Sir, in determining the foreign operation functional currency (F.C), which rules should be use instead ?
1. The currency which mainly influence sale price, operating cost and etc
Or
2. Degree of autonomy, volume of transactions with parent and etc
If question were ask about the F.C for foreign operation, does we have to mention all this rule?
Ask the Tutor ACCA SBR
Foreign subsidiary
6y ago#1If asked to determine the functional currency , write out all the criteria (that you can remember)
So if the foreign subsi only met the first criteria I mentioned above and does not met the F.C criteria on the second, it will still use parent FC?
6y ago#3Judgement call - but never a problem in exam because they give you loads of data.
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