According to FASB ASC 830, Foreign Currency Matters, which of the following conditions would indicate that a foreign subsidiary’s functional currency is the foreign currency?
A. sales price not affected by changes in exchange rate in the short run
B. high volume of intercompany transactions
C. sales in the local market not significant
D. Most of the subsidiary’s financing comes from the parent.
Answer:A
According to FASB ASC 830, Foreign Currency Matters, which of the following conditions would indicate that a foreign subsidiary’s functional currency is the foreign currency?
A. sales price not affected by changes in exchange rate in the short run B. high volume of intercompany transactions C. sales in the local market not significant D. Most of the subsidiary’s financing comes from the parent.