The presentation currency is:
A) the currency of the primary economic environment in which the foreign entity operates.
B) a currency other than the entity's functional currency .
C) the currency of the country in which the foreign operation is based.
D) the currency in which the financial statements are presented by the reporting entity.

Question

Quizplus · Accepted Answer

The presentation currency is the currency in which the financial statements are presented by the reporting entity. This can differ from the entity's functional currency, which is the primary currency used by the entity for its day-to-day operations. The choice A is the functional currency, not the presentation currency. The choice B is incorrect as the presentation currency must be a functional currency. The choice C is also incorrect, as the country of operation is not necessarily the same as the presentation currency.

The Presentation Currency Is