The local currency is:
a) [the preferred functional currency for subsidiaries that are highly integrated with the parent.]
b) [translated into the functional currency under the current rate method.]
c) [the same as the functional currency under the current rate method.]
Answer is C) but don’t really understand. I though under current rate method, parent and sub have different functional currencies. Since local currency is the sub country’s currency, would it not differ from the functional currency?
Please enlighten me.