SIMCO Commercial Corporation (SCC) is located inGodalming, U
SIMCO Commercial Corporation (SCC) is located inGodalming, United Kingdom (U.K.). SCC is owned by an investment group locatedin London and all corporate functions are performed in Godalming. However,manufacturing operations occur in both the U.K. and South Africa. SCC’spresident made the statement that the corporation should use the EU asfunctional currency since administrative functions are performed in the U.K andthe corporate headquarters are domiciled here. However, the head of operationsstated that the functional currency, at least for the manufacturing arm, shouldbe the South African Rand because all materials are purchased locally and 80%of manufacturing occurs in South Africa.Prepare a one page essay that discusses whichindividual you agree with and why. In your essay, address the following:Whatare the ramifications to the consolidated financial statements of SCC ifthe EU is used as the functional currency for the manufacturing operationslocated in South Africa?Whatare the ramifications to the consolidated financial statements of SCC ifthe South African Rand is the functional currency used for themanufacturing operations located in South Africa?Please make this 1 page and in APAformat.Please include a reference page andsite sources within the paper.