Operating with a high degree of autonomy: Current rate or temporal? parent, current, company, summarize, different

Kapie

1) If subsidiary of a U.S. GAAP company is operating with a high degree of autonomy, what should it use, current rate or temporal?

2) If subsidiary is highly integrated with U.S. GAAP parent, what should it use, current rate or temporal?

If parent in the above followed IFRS, would the answers be different? Anyone can summarize that?

MiniMe7

1. Current
2. Temporal

Without any other additional information, I would have chosen the same answers for IFRS.

NO EXCUSES

Houjichasan

I think US GAAP vs. IFRS only matters if the sub is in a hyperinflationary environment

SFoyil

That's correct, but IFRS requires that if the parent dictates sales price of subsidiary, or its regulation dictate so, then subsidiary must use temporal, because its functional currency will be the parent's. Now, this was specifically attributed to IFRS, so not sure if U.S. GAAP parent dictates sales price of subsidiary, if $ would be the functional currency like under IFRS!