||The currency in which a foreign subsidiary executes its business transactions; the local currency may or may not be the same as the functional currency.
||The currency which reflects the primary economic climate of the subsidiary’s operations; in other words, it is the currency of cash generation and expenditure. The local currency may be the functional currency, but parent company management has some degree of latitude in designating the functional currency.
|Presentation (or Reporting) Currency
||The currency in which the parent company reports its financial statements.