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Explain some Examples under FASB 52 that a foreign entity's functional currency would be similar as the parent firm's currency.
Answer: Three instances under FASB 52, in which the foreign entity's functional currency will be similar as the parent firm's currency, are:
a) The foreign entity's cash flows directly influence the parent's cash flows and are readily available for remittance to the parent firm;
b) The sales prices for the foreign entity's products are approachable on a short-term basis to exchange rate changes in which sales prices are defined through worldwide competition; and,
c) The sales market is mainly located in the parent's country or sales contracts are denominated in the parent's currency.
Eurocurrency A currency on deposit outside its country of source. Such deposits are well known as external currencies, international currencies or xenocurrencies.
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I need a report on Accounting or Average Rate of Return. Can you please assist me for Accounting or Average Rate of Return report for about 2500 words?
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