|Particulars||IFRS||US GAAP||Indian GAAP|
|Functional currency definition||Currency of primary economic environment in which entity operates.||Similar to IFRS||Functional currency is not defined|
|Functional currency Determination||If indicators are mixed and functional currency is not obvious, judgment is used to determine functional currency that most faithfully represents economic results of entity’s operations by focusing on currency of primary economic environment in which entity operates.||Similar to IFRS; however,
no specific hierarchy of factors to consider. In practice, currency in which cash flows are settled is often key consideration.
|Functional currency determination is not required.
It is normally uses the currency
of the country in which it is domiciled in recording its transactions.
|Presentation currency||When financial statements are presented in the currency other than the functional currency, assets and liabilities are translated at exchange rate at balance sheet date. Income statement items are translated at exchange rate at dates of transactions, or average rates if rates do not fluctuate significantly.||Similar to IFRS.||Similar to IFRS.
It is assumed an entity normally uses the currency of the country in. which it is domiciled in presenting its financial statements. If a different currency is used, reason for using a different currency is disclosed.
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