Ch 7: IAS 21 Foreign Currency Transactions
2. Reporting foreign currency transactions
3. Comprehensive examples
3-2 Q&A Bilal Limited [O]
4. Objective Based Q&A
4-1 MCQs 1 to 20 [R]
Query: my oint rekates to mcq 5. "A functional currency is the main currency that a company conducts its business" isnt this the definition of functional currecny sir?
Response: The definition as per IAS 21 Para 8 is: "Functional currency is the currency of the primary economic environment in which the entity operates." Further, IAS 21 Para 9 explains that: "The primary economic environment in which an entity operates is normally the one in which it primarily generates and expends cash. An entity considers the following factors....."