FUNCTIONAL CURRENCY Definition

Bookmark and Share

FUNCTIONAL CURRENCY, generally, is the currency of record for any given entity. Within the context of foreign currency, it is the currency which a foreign subsidiary handles on a day-to-day basis in generating net cash flows. It is normally the currency of the country in which the subsidiary operates, but may be the currency of the parent company.

Learn new Accounting Terms

SHARE CAPITAL is that portion of a corporations equity obtained from issuing shares in return for cash or other considerations.

THIRD PARTY is someone other than the principals directly involved in a transaction or agreement.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.