Refer to exercise 13-4. Using the same information, assume that the Brazilian real is identified as the functional currency of the subsidiary.
a) Analyze the impact of identifying the Brazilian real as the functional currency on the subsidiary's financial reporting.
b) Discuss the implications of this decision on the consolidation process for the parent company.
c) Evaluate the potential risks associated with using the Brazilian real as the functional currency.
d) Propose strategies to mitigate currency-related risks in the subsidiary's operations.
