Factors to be considered in choosing the presentation currency

Briefly explain the factors to be considered when choosing the presentation currency of financial statements

  1. Whether the activities of the foreign operation are carried out as an extension of the reporting entity or are being carried out with significant degree of
  2. Whether the transactions with the reporting entity are high or low proportion of the foreign operation‟s activities.
  3. Whether cash flows from the activities of the foreign operation directly affects the cash flows of the reporting entity or
  4. Whether foreign operations is able to borrow and service its own debts


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