Posted by: Pdfprep
Post Date: April 23, 2021
According to IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity should determine its functional currency.
Which of the following is NOT a factor that should be considered by an entity when determining its functional currency?
A . The currency that mainly influences selling prices of the entity’s goods and services.
B . The currency that mainly influences labour, material and other costs.
C . The currency used for published financial reports.
D . The currency of the country whose competitive forces determine prices of goods and services.
Answer: C
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