Continuing with some complexities of identifying an entity’s functional currency under IFRS We concluded last time by considering a Canadian mining entity that identities the South African rand as the functional currency of an exploration-stage foreign subsidiary, based solely on its current expenditures. As the discussion of CPA Canada’s IFRS Discussion Group indicates, it may well have to…

A common question relating to identifying an entity’s functional currency under IFRS, on which one can find plenty of diversity in practice. Many Canadian entities, particularly in the resource industries (and let’s assume for this purpose with Canadian dollar functional currencies), have exploration-stage foreign subsidiaries. At the current time, those subsidiaries are incurring the bulk…