Encana is reassessing its pick for functional currency and presentation currency. Historically, Encana has used Canadian dollars for US dollars and its functional currency for its presentation currency, but changes in Encana's operations in the last few years have caused the company to revisit its picks.
Moreover, the Encana must contemplate whether its conditions for utilizing U.S. dollars as demonstration money stay valid. To make its choices, Encana must apply the guidance in IAS 21, "The Effects of Changes in Foreign Exchange Rates." Eventually, Encana must discover the effect of its own choices on the financial statements.
PUBLICATION DATE: November 07, 2012 PRODUCT #: W12374-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
