CERTYNEX IFRS ACADEMY

Brenne, established in France and presenting its accounts in euros, holds a subsidiary also located in France, but whose activities are conducted in dollars with American customers. Is this subsidiary a foreign operation?

No: a subsidiary located in the same country as its parent is not a foreign operation, the currency of its activities mattering little.

No: the notion of foreign operation mainly targets branches, not subsidiaries.

Yes, provided that the subsidiary is consolidated under the full consolidation method.

Yes: its activities are conducted in a currency other than that of the reporting entity, although it is in the same country.