GuestFunctional Currency
Source: Ind AS 21 (summary)
The functional currency is the currency of the primary economic environment in which the entity operates, normally the one in which it mainly generates and spends cash. A foreign currency transaction is first recorded at the spot rate on the date of the transaction, and monetary items are later restated at the closing rate.
Typing details
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About Accounting
Accounting principles in short, plain-language summaries: double entry, accrual, going concern and prudence, then Ind AS topics such as inventories, cash flows, events after the reporting period, income taxes, property, plant and equipment, employee benefits, government grants and foreign currency.