FUNCTIONAL CURRENCY Definition

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.

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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.

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