IAS 21Chapter 3Lesson 1
The functional currency: indicators and determination
Step 1 of 6Learning objectives
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The functional currency is not chosen by preference: it is deduced from primary then secondary indicators, examined together; mixed cases and foreign operations call for judgement.
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Learning objectives
- List the primary and secondary indicators of the functional currency.
- Apply the determination approach without stopping at a single indicator.
- Handle mixed cases and foreign operations through judgement, without a numeric threshold.