Currency is a major issue in financial reporting because companies must decide in which currency to present their financial information to the general public.

Question

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Companies operating in different countries may deal with multiple currencies, and it is a critical decision to determine which currency to report their financial statements. This decision affects the comparability of financial statements amongst different companies, the ease of understanding for stakeholders, and the company's overall financial performance. Therefore, currency is a major issue in financial reporting.

Currency Is a Major Issue in Financial Reporting Because Companies