Overall determination

Learning objectives

• Determine the functional currency by following the approach of the Standard (indicators, consistency over time).L1, L2

Normative references

• IAS 21 §17Overall approach: each entity (stand-alone entity, entity with foreign operations or foreign operation) determines its functional currency in accordance with paras. 9 to 14, translates foreign currency items into that currency and reports the effects of that translation in accordance with paras. 20 to 37 and 50.

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

1 question

• An entity freely chooses its functional currency, without having to follow the indicators set out in the standard.L1