According to AASB 121 The Effects of Changes in Foreign Exchange Rates, the currency in which the financial statements are presented by the reporting entity is the:
A) economic currency.
B) domestic currency.
C) functional currency.
D) presentation currency.

Question

Quizplus · Accepted Answer

According to AASB 121, the currency in which the financial statements are presented by the reporting entity is the presentation currency. This is the currency used to report and communicate the financial information to users. The reporting entity must also determine its functional currency, which is the currency of the primary economic environment in which it operates, and use that currency for its accounting records. However, the financial statements may be presented in a different currency, which is referred to as the presentation currency.

According to AASB 121 the Effects of Changes in Foreign