The functional currency approach adopted by FASB 52 requires:
A)separate statements be maintained by the domestic parent company and the foreign branch both in their own currencies
B)separate statements be maintained by the domestic parent company and the foreign branch with the foreign branch translated into the functional currency
C)results from foreign currency changes to be ignored
D)a focus on whether the domestic reporting entity's cash flows will be indirectly or directly affected by changes in the exchange rates of the foreign entity's currency

Question

The functional currency approach adopted by FASB 52 requires:
A)​separate statements be maintained by the domestic parent company and the foreign branch both in their own currencies
B)​separate statements be maintained by the domestic parent company and the foreign branch with the foreign branch translated into the functional currency
C)​results from foreign currency changes to be ignored
D)​a focus on whether the domestic reporting entity's cash flows will be indirectly or directly affected by changes in the exchange rates of the foreign entity's currency

Quizplus · Accepted Answer

The Answer is D

The Functional Currency Approach Adopted by FASB 52 Requires