Reporting Currency


DEFINITION of 'Reporting Currency'

The currency which is used for an entity's financial statements. The reporting currency in financial statements and other financial reports are easiest to understand when they are compiled using only one currency. However, many large companies have operations in many different countries. This often requires doing business with a variety of currencies.

BREAKING DOWN 'Reporting Currency'

To compile financial reports for multicurrency firms, accountants must convert foreign currencies into a single reporting currency at the current exchange rate. To standardize this process, there are a variety of accounting regulations which prescribe a uniform methodology for carrying out this conversion. This helps to maximize the transparency with which these financial reports are presented.

  1. Currency

    Currency is a generally accepted form of money, including coins ...
  2. Accounting Currency

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  3. Foreign Exchange

    The exchange of one currency for another, or the conversion of ...
  4. Foreign Currency Effects

    The gain or loss on foreign investments due to changes in the ...
  5. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
  6. Accountant

    A professional who performs accounting functions such as audits ...
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  2. Do working capital funds expire?

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  3. How much working capital does a small business need?

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  4. What does high working capital say about a company's financial prospects?

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  5. How can working capital affect a company's finances?

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