Reporting Currency
Reporting currency is a financial term used in the corporate treasury to define the currency used by a parent company in the financial statements to make easier the understanding of their financial reports.[1]
Background
The reporting currency is usually the currency used in an organization's home country. In order to issue financial statements in its reporting currency, a multi-national firm must first convert the reporting of its subsidiaries in other countries to the reporting currency.[2]
The presentation currency is the currency in which the entity presents its financial statements and this may be different from the functional currency, (e.g. If the entity in question is a foreign owned subsidiary. It may have to present its financial statements in the currency of the parent company, even though that is different from their normal trading currency).[3]
Reporting Currency in Zimbabwe
The reluctance by the government to realise that the local currency is yet to attain the normal status of a functional currency is quite worrisome. Officials continue announcing monetary and fiscal measures basing on a currency they do not believe in. When they want to set the capital requirements of banking institutions, they prefer to calibrate the amounts in the greenback.[4]
