An entity’s functional currency is the currency of the primary economic environment in which the entity operates; normally, that is the currency of the environment in which an entity primarily generates and expends cash.

This sample questionnaire lists factors to be considered both individually and collectively when determining the functional currency of an entity. Using judgement and leveraging supportable facts and discussions with appropriate personnel in corporate accounting, tax and treasury, a checkmark can be inserted in the appropriate columns of the questionnaire for the entity for which the functional currency needs to be determined.