Currency is any kind of money that circulates in an economy. Organizations must have one accounting currency, also known as the company currency or home currency. The accounting currency is identified based on how the company wants to represent its financial reports. On the other hand, companies report their transactions in a specific currency, known as reporting currency. It is normal to post transactions in a different currency, and this amount of money is translated to the home currency, using the current exchange rate. This is a business need in enterprises that operate in a multinational environment.
Each subsidiary has its local reporting currency and at the same time, there should be a specific secondary reporting currency. All the transactions are translated into the reporting currency...
