We even called ourselves Los Dos Traviesos, Spanish for the comic strip characters, The Katzenjammer Kids. In 1897, The Katzenjammer Kids,'' the pioneering comic strip created by Rudolph Dirks, made its debut in the New York Journal.
International Accounting Standard 21 (IAS 21) defines functional currency as âthe currency of the primary economic environment in which the entity operatesâ. The same Standard defines presentation currency as âthe currency in which the financial statements are presentedâ. The functional currency is determined by looking at a number of relevant factors. This currency should be the currency in which an entity usually generates and spends cash.
Its functional currency is therefore not the U.S. dollar, which means that when the subsidiary's financial statements are consolidated into the financial statements of the U.S. corporate parent, they need to be converted into U.S. dollars at the current exchange rate between those two currencies.enefits. For those who read the financial statements of U.S. companies doing business abroad, the impact of the conversion of offshore business operations into the U. S. dollar at home is made clear by functional currency analysis and determination.