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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Functional Currency IAS 21
I have a question regarding functional currency of a company:
If the nature of companies activities is investments in start up projects around the world (therefore various countries/currencies – therefore no sales/purchases – just dividends, interest and gains/losses on sales) how shall the functional currency be determined? Could it be the source of finance? the country of registration? the main bank account transaction? the taxes? thanks
Hi,
IAS 21 states that we look at the currency in which an entity’s finances are denominated.
Thanks