CERTYNEX IFRS ACADEMY

Aldric, whose accounts are in euros, consolidates a subsidiary in Switzerland whose financial statements are in Swiss francs. Aldric asks which standard to use to bring this subsidiary's statements into its consolidated accounts. What is the consistent analysis?

IAS 21 does not apply, because the subsidiary enters into no foreign currency transaction with Aldric.

The subsidiary's results and financial position, included by consolidation, are translated under IAS 21.

IAS 21 only covers purchases and sales made in foreign currency by the parent itself.

IAS 21 applies to an equity-accounted subsidiary, the consolidation of a subsidiary falling under IFRS 10 alone.