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.