CAF-6 · Chapter 4 · Question 1 of 15
According to IAS 21, what is 'Functional Currency'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The currency of the primary economic environment in which the entity operates.
Explanation
IAS 21 defines functional currency as the currency of the primary economic environment in which an entity operates.
More IAS 21 Foreign Currency Transactions MCQs
- Q3Which of the following is classified as a 'Monetary Item' under IAS 21?
- Q4At the end of the reporting period, how should foreign currency monetary items be re-translated?
- Q5A company holds an investment in land in a foreign country, measured at historical cost in the foreign currency. At the reporting date…
- Q6Exchange differences arising on the settlement of monetary items should be recognized in:
- Q7Which of the following is a primary indicator for determining an entity's functional currency?