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An entity is undecided between two possible functional currencies. Per Ind AS 21, the secondary indicators (financing activities, operating receipts retention) are:
ASupporting evidence used to break ties when primary indicators are mixed; never override primary indicators
BEqual to primary indicators in weight
CIrrelevant for foreign operations
DThe decisive factor by default
Answer & Solution
Correct answer: A. Supporting evidence used to break ties when primary indicators are mixed; never override primary indicators
Secondary indicators are tie-breakers when primary indicators are mixed. They cannot override primary indicators when primary indicators clearly point to a particular currency.
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