In Cases of Operations Located in Highly Inflationary Economies

Multiple Choice

In cases of operations located in highly inflationary economies:

A) The reporting currency of the U.S.parent-the U.S.dollar-should be used as the foreign entity's functional currency.
B) The foreign currency should be used as the functional currency with a footnote to the financials displaying what the earnings would have been using the U.S.dollar as the functional currency.
C) The foreign currency should be used as the functional currency with a single line item-foreign translation-reporting the adjustment using the U.S.dollar as the functional currency.
D) None of the choices are correct.