CIMA F2 Advanced Financial Reporting F2 Question # 79 Topic 8 Discussion

CIMA F2 Advanced Financial Reporting F2 Question # 79 Topic 8 Discussion

F2 Exam Topic 8 Question 79 Discussion:
Question #: 79
Topic #: 8

Which THREE of the following  would determine the functional currency of an overseas subsidiary in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates?


A.

The currency which principally influences selling prices for goods and services. 


B.

The currency in which operating receipts are retained. 


C.

The currency that mainly influences labour, material and other costs. 


D.

The currency which the parent company uses to present its financial statements.


E.

The currency in which all non-current assets are purchased and recognised.


F.

The currency which principally influences the choice of functional currency of the parent. 


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