Archive / 1.18 Foreign Currency

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Changing functional currency

As we’ve mentioned before, a company’s functional currency is the main currency a company uses in its daily operations. Given situations that may arise in the economic environment, i.e. change in the official currency used in the country the entity operates, the company is also required to change its functional currency.  (more…)

Treating foreign currencies

In essence, a functional currency is your main currency that you use in your business or unit of a business. Normally it’s expected to be the principal currency used in the economic environment the entity operates (generates and expends cash). Now as it happens, businesses often encounter foreign currencies in their business – either buying […]