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Are there any provisions of IAS or US GAAP or any acceptable accounting standards for mutiple functional currencies to be used in the preparation of financial statements. The provisions for separate operations should be ignored.

Please provide references that can be cited.


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

Here's an interesting article (with reference to FAS 52) to cite:

(semi-semior) |

Many thanks for your response. The article however, does not address the question directly. I was hoping for a reference to a part of a standard that either allows for multiple functional currencies for a single entity (a part for separate operations/segments within the same entity) or that prohibits the use of such.


Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

US GAAP for consolidated financial statements requires reporting in a single currency, and specifies functional currency identification for individual components, as well as rules to translate other currencies into the reporting currency. The individual units can use individual functional or local currencies to record activity, but consolidated financial reporting must reflect the reporting currency of the reporting entity via translation.

Robert Honeyman
Title: CFO
Company: Advanced Predictive Analytics
(CFO, Advanced Predictive Analytics) |

I was going to let this one go because Barrett Peterson provides the correct answer to the main issue of currencies and reporting, while Wayne Spivak's reference to FAS 52 details the actual requirements. But, I have a question (or two...).

What problem are you attempting to solve? Do you have a single corporate entity that is bound by foreign vendor or customer agreements that are driven by their currencies? Does this single entity have employees in foreign offices? Or is this a consolidation question, which has been addressed by Mr. Peterson? How would the answer affect your reporting? Are you trying to deal with translation of long-lived assets and depreciation?

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