According to IAS 21 The Effects of Changes in Foreign Exchange Rates, an entity should...

CIMA F1 Question Answer

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?

The currency that mainly influences selling prices of the entity's goods and services.

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

The currency used for published financial reports.

The currency of the country whose competitive forces determine prices of goods and services.

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