What is meant by functional currency

Reference no: EM132894751

1. Why are financial statements translated from one currency to another?

2. What is meant by ‘functional currency'?

3. What is the rationale behind the choice of an exchange rate as an entity's functional cur- rency?

4. What guidelines are used to determine the functional currency of an entity?

5. How are statement of profit or loss and other comprehensive income items translated from the local currency into the functional currency?

6. How are statement of financial position items translated from the local currency into the functional currency?

7. How are foreign exchange gains and losses calculated when translating from local curren- cy to functional currency?

8. What is meant by ‘presentation currency'?

9. How are statement of comprehensive income items translated from functional currency to presentation currency?

10. How are statement of financial position items translated from functional currency to pre- sentation currency?

Reference no: EM132894751

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