Assignment:
This assignment is to report on the functional currency of Amazon Inc. When researching your answer keep in mind the following:
Both U.S. GAAP and IFRS recommend the following factors:
the location of primary sales markets,
sources of materials and labor,
the source of financing, and
the amount of intercompany transactions should be evaluated in identifying an entity's functional currency.
U.S. GAAP does not provide any guidance as to how these factors are to be weighted (equally or otherwise) when identifying an entity's functional currency. Unlike U.S. GAAP, IAS 21 provides a hierarchy of factors to consider (reference).
Attachment:- Preparation of Journal Entries.rar