Under IFRS,the treatment of any of a company's foreign subsidiary is dependent upon:

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Under IFRS, the treatment of a foreign subsidiary is dependent on its functional currency, which is determined based on the "primary economic environment in which the subsidiary operates and generates cash flows." The functional currency is used to translate the subsidiary's financial statements into the reporting currency of the parent company. Therefore, it is important for the parent company to determine the functional currency of the subsidiary to ensure accurate financial reporting. The other options (B, C, and D) may also be factors to consider, but the functional currency is the primary determinant under IFRS.

Under IFRS,the Treatment of Any of a Company's Foreign Subsidiary