CORPORATE ACCOUNTING

ACCT209: CORPORATE ACCOUNTING Order Description   Lotus Limited is an Australian company with two overseas subsidiaries, one in Vietnam and the other in Thailand. The Vietnam subsidiary has as its major activity the distribution in Vietnam of Lotus Ltd.’s products. It has been agreed that the subsidiary will, for a period of time, retain all profits in order to expand its distribution network in Vietnam. In the past it has remitted most of its profits to the Australian parent company. The Thailand subsidiary of Lotus Limited has been established to manufacture a range of products for the South-East Asian market. There is also an expectation that it could in the future become the major manufacturing plant for Lotus Limited Ltd and provide a supply of products for the Australian market. Required Based on the above, determine the functional currency of the foreign subsidiaries. Support you discussion with applicable AASB and specific paragraphs of the AASB.