Why Do We Hedge USD? A Critical Lesson in Functional Currency

The functional currency of your subsidiaries impacts not only how your financials are prepared, it sets the strategic stage for how your company views currency exposures, determines if you qualify (or not) for special hedge accounting, and even how competitive you can be against your rivals.

This course explains the long and sometimes unfavorable and lasting impacts of a company’s functional currency decision. We also discuss how to determine the functional currency, why it matters so much, and some of the things to watch out for when setting up a new legal entity.