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Identify the statement about functional vs presentation currency under Ind AS 21 that is INCORRECT.
AAn entity may have a SINGLE functional currency, determined by the primary economic environment
BAn entity may have MULTIPLE functional currencies, one per geographic segment
CAn entity's presentation currency may differ from its functional currency
DEach foreign operation determines its own functional currency separately
Answer & Solution
Correct answer: B. An entity may have MULTIPLE functional currencies, one per geographic segment
Each reporting entity has ONE functional currency reflecting its own primary economic environment. A multinational with multiple foreign operations has one functional currency PER OPERATION, but the parent itself has only one functional currency.
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