When the currency selected for presentation purposes differs from an entity's functional currency, the financial statements need to be translated into this selected presentation currency.

Question

Quizplus · Accepted Answer

This statement is true. When the presentation currency is different from the functional currency, the financial statements must be translated into the presentation currency in order to accurately reflect the financial position and performance of the entity for external reporting purposes.

When the Currency Selected for Presentation Purposes Differs from an Entity's