F --> P = C (I use an inappropriate phrase so you might have to think of your own here)
Then if you can remember the orginal order of Local - Functional - Presentation then you can fill in the gaps: if you need to translate local to functional, that means functional must = presentation and if you need to translate functional to presentation, that means local must = functional.
Local is the currency of the subsidiary’s country. Presentation is the curreny of the parent’s financial statements. You are left to determine which is Functional - which currency does the majority of the subsidiary’s business operate with? Is the management local and do they make their own decisions?
That’s the way I simplify it in my mind anyway and it seems to work.
That’s a fantastic write up, S2000. I can’t tell you how many questions I’ve gotten wrong on this seemingly very simple concept over the past few months. Thanks!