Asked by
daniel ondera
on Oct 16, 2024Verified
Cho Co., a public Canadian corporation, has a subsidiary in South Africa. It has been determined that the functional currency of the foreign operations is the South African rand. Which of the following statements is true?
A) Cho Co.'s financial statements will have to be translated into South African rand.
B) The presentation currency is the Canadian dollar.
C) Cho's transactions with the subsidiary will need to be re-measured.
D) Cho will not be required to consolidate.
Functional Currency
The primary currency used by a business or entity in its daily operations.
South African Rand
The South African Rand is the official currency of South Africa, denoted by the symbol ZAR.
- Recognize the attributes associated with the linkage between a consolidated parent company and its overseas subsidiary.
- Pinpoint the principal reasons for the selection of a functional currency.
Verified Answer
MR
Learning Objectives
- Recognize the attributes associated with the linkage between a consolidated parent company and its overseas subsidiary.
- Pinpoint the principal reasons for the selection of a functional currency.