Determination of Factors Affecting Functional Currency Choice: A Logistic Regression Analysis

Abstract

Functional currency is the currency of the primary economic environment in which the entity operates. After that the International Accounting Standards Board (IASB) issued International Accounting Standards No. 21 (IAS 21) in 1983. For this reason, it is vital for the corporations to determine true functional currency in which they operate. Main result of the study by using logistic regression is that appropriate selection of the functional currency has very important role for assessment of the financial performance of the corporations properly.