If the restatement method for a foreign subsidiary involves remeasuring from the recording currency into the functional currency,then translating from functional currency to U.S.dollars,the functional currency of the subsidiary is:
I.the U.S.dollar.
II.the recording currency unit.
III.a third country's currency.
A)I
B)III
C)II
D)Either I or II

Question

Quizplus · Accepted Answer

The functional currency of the subsidiary is a third country's currency. This is because the process involves remeasuring from the recording currency into the functional currency, and then translating from the functional currency to U.S. dollars, indicating that the functional currency is neither the U.S. dollar (the final translation target) nor the recording currency (the initial currency being remeasured).

If the Restatement Method for a Foreign Subsidiary Involves Remeasuring