Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What Does Meaning of " Functional Currency"?

user-image
Question ajoutée par Mohammad Zaid abu odeh , Senior Accountant , Mega Food Industries And Products Exports L.L.C
Date de publication: 2015/08/19
Mohamed Ebrahim
par Mohamed Ebrahim , Director , Ace Associates - Certified Public Accountants – member firm of McMillan Woods Global

Functional currency is the principal (most used) currency used by the entity e.g. a Tea brokerage house in Kenya, whose reporting currency would be Kenya shilling but its Functional currency would be US Dollar, it buys teas in the EATTA Tea Auction in USD and sells it to buyers in USD. 

Badar Khan
par Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

it is the currency in which the company operates

lynn feghali
par lynn feghali , Production coordinator , freelancer

  1. Functional currency refers to the main currency used by a business or unit of a business. It is the monetary unit of account of the principal economic environment in which an economic entity operates.

imadoddin mohammed
par imadoddin mohammed , retail store manager , Adityabirla Group

a Canadian company with the bulk of its operations in the United States would consider the U.S. dollar its functional currency, even if financial figures on its balance sheet and income statement are expressed in terms of Canadian Dollars. 

More Questions Like This