The "reporting currency" is:
A)the currency of the primary economic environment in which the entity operates
B)the currency in which the MNC prepares its consolidated financial statements
C)a currency that is not the parent firm's home country currency
D)a and c

Question

Quizplus · Accepted Answer

The reporting currency is the currency in which the MNC prepares its consolidated financial statements. It may or may not be the parent firm's home country currency, but it is the currency used for reporting the financial performance of the MNC as a whole. Option A is incorrect because it refers to the functional currency, which is the currency of the primary economic environment in which the entity operates. Option C is partially correct but does not fully describe the reporting currency.

The "Reporting Currency" Is