A foreign subsidiarys functional currency determines whether its financial statements should be translated or re-measured. Identify the

Question:

A foreign subsidiary’s functional currency determines whether its should be translated or re-measured. Identify the primary factor in determining a subsidiary’s functional currency. What other factors can influence management’s determination as to the subsidiary’s functional currency?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...