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Hello Tutor,
Could you please clear my confusion regarding the title of the question?
I understand that an entity can have a different presentation currency than its functional currency.
Lets suppose a foreign operation has a different functional currency than its Parent )(reporting entity), it needs to be translated before consolidation. To what? In to the presentation currency of the Parent (assuming Parents Functional and presentation currencies are different) or to the functional currency of the Parent?
I appreciate your help.
God bless.
Perfect.
Currency of the subsidiary is dinars – it functions in dinars.
It will prepare local accounts in dinars.
But the parent is in dollarland so the subsidiary has to translate into a different presentation currency – the dollar.
🙂
Thank You, Sir.
Does that mean the Parent has same functional and presentation currency?
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