What of the following factors indicate that the functional currency of a foreign operation is NOT that of the reporting entity?
A) The activities of the foreign operation are carried out with a significant degree of autonomy.
B) There are no material inter-entity transactions or other exchanges between the foreign entity and the reporting entity.
C) The day-to-day financing of the foreign operation is not supplied by the reporting entity and the cash flows of the reporting entity are largely unaffected by the cash flows of the foreign operation.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above factors indicate that the functional currency of a foreign operation is not that of the reporting entity. The autonomy of the foreign operation, lack of material inter-entity transactions, and separate financing and cash flows all suggest that the foreign operation operates independently and may have a different functional currency than the reporting entity.

What of the Following Factors Indicate That the Functional Currency