Toiminantavaluutan
Toiminantavaluutta, often translated as "functional currency" or "transaction currency," refers to the primary currency in which a company conducts its day-to-day business operations. This is the currency used for most sales, purchases, and other transactions. When a company operates in multiple countries, it may have a functional currency for its parent company and potentially different functional currencies for its foreign subsidiaries, depending on the economic environment in which each subsidiary operates.
The determination of a company's functional currency is crucial for accounting and financial reporting purposes, particularly
Factors considered when identifying the functional currency include the currency that mainly influences sales prices, the