Functional currency - the currency of the primary economic environment where an entity operates, generates cash and expends cash.
Does entity mean the parent company or the subsidiary?
In this context, it could mean either. Here they’re simply talking about an organization, without considering the parent-sub relationship.
Oh man, this section on FRA is awful. Most of it is just arbitrary rules that you have to memorize.
ya they should remove that temporal shit and stick with current
anyone want to explain the mixed ratios for example ROA, total asset turnover, Inventory turnover and why they increase or decrease when the exchange rate app/depreciates?