Topic 1: Define the term “functional currency.” How is the functional currency determined. Discuss why it is important for Essay

Topic 1: Define the term “functional currency.” How is the functional currency determined. Discuss why it is important for a foreign subsidiary to determine its functional currency when translating its foreign currency financial statements?
Topic 2: Select three Multinational U.S. companies from the same industry and review their annual reports to determine their accounting policy on foreign currency translation. Given their practice on this issue, do you think their financial statements are comparable? Explain your answer.

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