Page 92 - SBR Integrated Workbook STUDENT S18-J19
P. 92
Chapter 7
Example 1
Functional currency
Suntory, a private limited company with a functional currency of dollars ($),
has an overseas subsidiary called Maior.
Maior manufactures golf equipment which it sells mainly in Japan in yen.
Local management determines prices based upon the local legal and
business conditions. Most raw materials and labour are sourced from local
suppliers with a small amount of specialised equipment sourced from China.
Maior sells a small amount of golf clothing, which it purchases from Suntory
and pays in dollars.
Maior conducts its business with significant autonomy from Suntory
What is the functional currency of Maior?
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