Parsons Produce uses the Euro as its functional currency. In attempt to appeal to British investors, Parsons uses the British pound as its presentation currency. Parsons Produce is allowed to report this way under IAS 21 even though the British Pound isn't its functional currency.

Question

Quizplus · Accepted Answer

IAS 21 allows an entity to present its financial statements in any currency (or currencies). If the presentation currency differs from the entity's functional currency, the financial statements are translated into the presentation currency.

Parsons Produce Uses the Euro as Its Functional Currency