Disclosure about currencies

Learning objectives

• Identify the disclosures required when the presentation currency differs from the functional currency.L2

Normative references

• IAS 21 §51In the case of a group, the functional currency referred to in paras. 53 and 55 to 57 is that of the parent.
• IAS 21 §53Disclosures (para. 53): when the presentation currency differs from the functional currency, the entity states that fact, discloses the functional currency and the reason for using a different presentation currency.
• IAS 21 §54Disclosures (para. 54): when there is a change in the functional currency of the reporting entity or of a significant foreign operation, the entity discloses that fact and the reason for the change.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• When the presentation currency differs from the functional currency, the entity does not have to disclose its functional currency.L2