Consider the following scenario: You have been promoted to the role of controller at the Multi Co. holding company where you work. The financial statements have been translated from using U.S. Generally Accepted Accounting Principles (GAAP) to using International Financial Reporting Standards (IFRS).

In your initial discussion post, explain how you would make your financial comparison. Ensure you cover the term functional currency and how it is determined. Also, address the following: If Multi Co. has a subsidiary in a highly inflationary environment, what method would be used under U.S. GAAP?