Under FASB ASC 830, Foreign Currency Matters, what is the definition of “functional currency?”
A. the primary currency used by the parent company
B. the currency that minimizes the translation adjustment on the consolidated financial statements
C. the currency in which the subsidiary does its financial reporting
D. the primary currency used by the subsidiary
Answer:D
Under FASB ASC 830, Foreign Currency Matters, what is the definition of “functional currency?”
A. the primary currency used by the parent company B. the currency that minimizes the translation adjustment on the consolidated financial statements C. the currency in which the subsidiary does its financial reporting D. the primary currency used by the subsidiary