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

ABSORPTION see ABSORB.

EQUITY SHARE CAPITAL is capital raised by an entity through the sale of common shares.

Suggest a Term

Enter Search Term

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