Accounting Currency

Accounting currency, also known as the reporting currency, is the currency in which a company’s financial statements are prepared and reported. This currency is typically the local currency of the country where the company operates or the currency that is most relevant to its business activities. The accounting currency is used to measure all financial transactions, assets, liabilities, revenues, and expenses.

Example

A company based in the United States with operations around the world might use the US dollar as its accounting currency, converting all international transactions into dollars for reporting purposes.