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.
The purpose of translation is to transform a subsidiary's financial statements, prepared in its functional currency, into the reporting currency of the parent. The purpose of re-measurement is to restate transactions from one currency into the functional currency of the entity.Re-measurement is also required when a subsidiary's financial statements have been denominated in a currency other than the subsidiary's functional currency. 85.he translation of a foreign subsidiary's financial statements is not required in the following two situations: (A.) when the subsidiary's functional currency is the U.S. dollar. (B.) when the subsidiary operates in a highly inflationary economy.