Financial statements presented in any currency
Can an entity present its financial statements in any currency of its choice?
Yes, an entity can present its financial statements in any currency of its choice which is known as presentation currency. Needless to say that these statements would be in addition to the financial statements prepared in the functional currency of the entity. While the application of certain factors are necessary to determine the functional currency based on a set of facts and circumstances, presentation currency is a currency which the entity can chose on its own. Such selected presentation currency has no impact on the net profit for the period, as the exchange difference could be dealt with in the other comprehensive income.
Foreign operations – Ind AS 21
Exchange differences on monetary items
Exchange differences from non-monetary items
Difference between monetary and non-monetary items
Treatment of exchange differences – Ind AS 21
Presentation Currency – Ind AS 21
Objectives, Scope & Benefits Ind AS 21
Functional Currency – Ind AS 21
Exchange differences from the presentation currency
Miscellaneous items – Ind AS 21
Transaction are covered by Ind AS 21
Recognition and measurement – Ind AS 21
Transaction are outside the scope of Ind AS 21
Difference between FX translation and FX revaluation
