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Reporting Currency

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Reporting currency
The currency in which the parent firm prepares its own financial statements; that is, US dollars for a US company.

Reporting Currency
The currency a publicly-traded company, investment company, or other organization uses in its financial statements and other reports. Generally speaking, the reporting currency is the domestic currency, but this is not always the case. It is important for an investor or auditor to note the reporting currency, especially when a company has international investments or interests.


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Tullow shifted its base to Britain after investing in the North Sea, and at the same time changed its basic reporting currency to sterling.
The company has adopted the US dollar as its reporting currency, effective in the first quarter.
When a country becomes highly inflationary, the accounting is as follows: Nonmonetary assets and liabilities (for example, fixed assets and the related accumulated depreciation) are remeasured from the local currency to the reporting currency (the new functional currency) at historical exchange rates.
 
 
 
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