Based on the arguments presented, what do you think should be the functional currency in this case?

MINI CASE

The Offshore Investment Fund (OIF) was incorporated in Fairfield, Connecticut, for the sole purpose of allowing U.S. shareholders to invest in Spanish securities. The fund is listed on the New York Stock Exchange. The fund custodian is the Shady Rest Bank and Trust Company of Connecticut (“Shady Rest”), which keeps the fund’s accounts. The question of which currency to use in keeping the fund’s books arose at once. Shady Rest prepared the fund’s books in euros, since the fund was a country fund that invested solely in securities listed on the Madrid Stock Exchange. Subsequently, the fund’s auditors stated that, in their opinion, the functional currency should be the U.S. dollar. This case is based on an actual occurrence. Names and country of origin have been changed to ensure anonymity.