CERTYNEX IFRS ACADEMY

Bastel, whose selling prices, costs and financing have stayed in euros, wishes to adopt the dollar as its functional currency so that its presentation is closer to that of its competitors. Nothing has changed in its activities. What should be said about this wish?

It justifies a change provided management approves it and informs the shareholders.

It justifies a change provided the comparative periods are restated in dollars.

It justifies a change, the functional currency being at the entity's choice, like the presentation currency, if management so decides.

It does not justify a change: the functional currency changes only if the underlying conditions change.