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The accounting currency is identified based on how the company wants to represent its financial reports. On the other hand, companies report their transactions in a specific currency, known as reporting currency.

The U.S. dollar is the reporting currency. If Esso Australia reported AUD 1 million, it would convert that AUD 1 million into USD, which is approximately $750,000. ExxonMobil would then use the $750,000 figure in its consolidated financial reporting.

What Is an Accounting Currency? The accounting currency is the monetary unit used when recording transactions in a company's general ledger, also commonly referred to as the company's "books" or accounting records. The accounting currency may also be called the reporting currency.

You must express the amounts you report on your U.S. tax return in U.S. dollars. Therefore, you must translate foreign currency into U.S. dollars if you receive income or pay expenses in a foreign currency. In general, use the exchange rate prevailing (i.e., the spot rate) when you receive, pay or accrue the item.

There are three defined and widely accepted accounting currency categories: local, functional, and reporting. Transactions can operate in all three spaces, or two, given two categories are designated with the same currency. These designations have an important purpose and order.

Accounting currency - This is the monetary unit of measure that is used to record the converted monetary value of economic transactions in ledger accounts. It is also be referred to as the "company" or ledger currency.

The reporting currency shares the same chart of accounts and accounting calendar as the source ledger (either the primary ledger or secondary ledger), but typically uses a different currency. The reporting currency allows you to report in a different currency than that of your primary or secondary ledger.