CoreBeginner · Advanced
The presentation currency is a choice
Learning objectives
- Explain that the presentation currency may be freely chosen and that translation follows the requirements of the Standard.L1, L3
Normative references
- IAS 21 §6The Standard applies to the presentation of an entity's financial statements in a foreign currency: it sets out the requirements for those financial statements to be described as complying with IFRS and, for translations of financial information that do not meet them, specifies the information to be disclosed (paras. 55 to 57).
- IAS 21 §18A reporting entity may comprise several individual entities (group, associates, joint arrangements, branches): the results and financial position of each of them whose functional currency differs from the presentation currency are translated in accordance with paras. 38 to 50; the presentation currency may be any currency (or currencies).
- IAS 21 §19A stand-alone entity, or an entity preparing separate financial statements in accordance with IAS 27, may also present its financial statements in any currency (or currencies); if that currency differs from its functional currency, translation follows paras. 38 to 50.
- IAS 21 §38An entity may present its financial statements in any currency (or currencies); if the presentation currency differs from its functional currency, it translates its results and financial position into the presentation currency, for example so that the entities of a group with different functional currencies are expressed in a common currency and consolidated financial statements can be presented.
Original summaries of the paragraphs (reference register), never a quotation of the standard.