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.
We will take an example to understand the implications of functional currency on deferred tax. 1. Entity A has INR as Tax Currency and USD as functional Currency. 2. The values of non monetary assets as maintained for tax books in INR is Rs 3,150 and as maintained with USD as functional currency stood at $77.73.