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37979In a separate scenario, Greene is investigating purchasing two overseas manufacturing companies that would be included in Greene’s consolidated financial statements as wholly owned subsidiaries. One company is located in New Zealand, and the other company is located in Spain. The CFO would like to know what factors need to be considered when determining the functional currency for a consolidated subsidiary. Research the Accounting Standards Codification to see what guidance is provided, and prepare a 2 page memo to the CFO explaining the various economic indicators to be considered both individually and collectively.
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