The U.S. IRS has released an international practice unit on the Functional Currency of a Qualified Business Unit (QBU). The practice unit lays out the seven steps needed to make a determination concerning the functional currency of a QBU in relation to the computation of income earned in non-U.S. locations:
- Step 1 - Is Use of US Dollar as Its Functional Currency Required?
- Step 2 - If No, What is the Economic Environment of the QBU?
- Step 3 - Facts and Circumstances Review of QBU
- Step 4 - Res…