functional currency

functional currency definition - business

functional currency

The currency of the primary economic environment in which an entity operates. For example, the U.S. dollar is the functional currency for U.S. tax-payers, except for qualified business units that are separate and identifiable entities of a trade or business that maintains separate books and records.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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