CERTYNEX IFRS ACADEMY

For Garnet, the primary indicators do not allow a conclusion. Its borrowings are issued in pounds sterling and its operating receipts are generally retained in pounds sterling. How should management use these two items?

As indicators that replace the primary indicators, which are then set aside in the analysis of the functional currency.

As criteria with no real weight, the standard relying mainly on selling prices and costs.

As supporting evidence, considered after the primary indicators, which may point to pounds sterling.

As a numerical rule: the currency of most of the borrowings is in principle the functional currency.