Multinational operations question

CFA Level II
#1

Triofind, Inc. (Triofind), based in the country of Norvolt, provides wireless services to various countries, including Norvolt, Borliand, Abuelio, and Certait. The company’s presentation currency is the Norvolt euro (NER), and Triofind complies with IFRS. Triofind has two wholly owned subsidiaries, located in Borliand and Abuelio. The Borliand subsidiary (Triofind-B) was established on 30 June 2016, by Triofind both investing NER1,000,000, which was converted into Borliand dollars (BRD), and borrowing an additional BRD500,000.

Having confusion in ascertaining the functional currency? Can anyone please help. Thanks

#2

The functional currency is the currency of the primary economic environment where the entity operates, in most cases this will be the local currency.

There’re some factors to determine the functional currency: the currency which prices goods; the currency which issues debt and equity.