Reporting currency

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.
References in periodicals archive ?
Reporting currency Where payments have been made in currencies other than the reporting currency (US$), the exchange rate existing at the time the payment is made has been used.
This clarifies the requirements for public-sector entities to convert foreign currency transactions and balances into their reporting currency and reflects the latest amendments to the corresponding IFRS.
NORDIC BUSINESS REPORT-12 January 2004-Tandberg ASA changes reporting currency to USD(C)1994-2004 M2 COMMUNICATIONS LTD http://www.
The Norwegian videoconferencing systems provider Tandberg ASA said on Monday (12 January) that it had decided to change its functional reporting currency from NOK to USD.
These currencies are commonly categorized as home currencies, base currencies and a reporting currency.
What's more, all information can be gathered by the various headquarters and seamlessly transferred from the local currencies into the reporting currency of the home countries -- within the requirements of the U.
and foreign companies extend the time periods for updating financial statements, allow foreign registrants more flexibility when selecting reporting currency and simplify reconciliation requirements for foreign registrants complying with certain international accounting standards.
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.
52, Foreign Currency Translation, prescribes the required accounting when an entity's functional currency changes from the reporting currency to the local currency.
For example, a company can negotiate a price for a receivable in its own reporting currency and thereby shift the exchange risk to the other party in the transaction.
When a company cannot bill in the reporting currency, it can use the settlement strategy to help mitigage foreign exchange risk.
A change in the exchange rate between the foreign currency and the reporting currency affects the amount of the reporting currency that will be received or paid.