A Change in functional currency is said to occur if there are minor economic changes in an entity's operations and this new functional currency is accounted for prospectively.

Question

Quizplus · Accepted Answer

A change in functional currency occurs when there is a significant change in an entity's operations or the economic environment in which it operates. This change is accounted for retrospectively, meaning that the financial statements of prior periods are restated using the new functional currency. Minor economic changes do not trigger a change in functional currency.

A Change in Functional Currency Is Said to Occur If