According to FASB ASC 830, Foreign Currency Matters, which of the following conditions would indicate that a foreign subsidiary's functional currency is the foreign currency?
A) Sales price not affected by changes in exchange rate in the short-run
B) High volume of intercompany transactions
C) Sales in the local market not significant
D) Most of the subsidiary's financing comes from the parent.

Question

Quizplus · Accepted Answer

According to FASB ASC 830, if a foreign subsidiary's sales price is not affected by changes in exchange rate in the short-run, it indicates that the functional currency of the subsidiary is the foreign currency.

According to FASB ASC 830, Foreign Currency Matters, Which of the Following