The effects of changes in foreign exchange rates states that where an entity has foreign operations, such as overseas subsidiaries, branches, joint ventures or associates, it should determine the functional currency of that foreign operation. MFRS 121 The Effects of Changes in Foreign Exchange Rates deals with this issue. Required: Explain the factors which should be taken into consideration in determining whether or not the functional currency of a foreign operation is the same as that of its parent.
The effects of changes in foreign exchange rates states that where an entity has foreign operations, such as overseas subsidiaries, branches, joint ventures or associates, it should determine the functional currency of that foreign operation. MFRS 121 The Effects of Changes in Foreign Exchange Rates deals with this issue. Required: Explain the factors which should be taken into consideration in determining whether or not the functional currency of a foreign operation is the same as that of its parent.
Chapter1: Financial Statements And Business Decisions
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The effects of changes in foreign exchange rates states that where an entity has foreign operations, such as overseas subsidiaries, branches, joint ventures or associates, it should determine the functional currency of that foreign operation. MFRS 121 The Effects of Changes in Foreign Exchange Rates deals with this issue.
Required:
Explain the factors which should be taken into consideration in determining whether or not the functional currency of a foreign operation is the same as that of its parent.
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