Understanding of standard currency

The accounting standard currency is the basic unit of accounting and reflects the financial status and operating results of an enterprise. After the accounting standard currency is determined, all other currencies are non-accounting standard currency, that is, the foreign currency understood in the accounting concept. Any economic business measured in the charge-based currency can be included in the account according to the actual amount during accounting. For all economic business measured in non-charge-based currency, during the accounting process, it must be converted into an accounting standard currency and then included in the account.

China's enterprise accounting standards stipulate that enterprises within the People's Republic of China should take the RMB as the accounting standard currency, and enterprises whose business income and expenditure are mainly foreign currency can also adopt a foreign currency
As the accounting standard currency, but the prepared accounting report should be converted into RMB. An overseas enterprise reports an accounting report to the relevant domestic departments, which should be converted into RMB. According to the Enterprise Accounting Standards, different currency units can be used for accounting statement recording and accounting statement preparation at the end of each period. Therefore, in theory, the narrow accounting standard currency concept can be adopted, that is, the unified currency unit used for accounting and accounting, and used by the enterprise to prepare accounting reports
The currency unit of is called the report standard currency. I personally understand that the billing standard currency is functional currency, while the report standard currency is reporting currency. In general, the accounting standard currency is consistent with the report standard currency.
Once selected, the billing standard currency cannot be changed at will. Only when the main business of an enterprise changes fundamentally and other special circumstances, and there are good reasons to prove that the original accounting standard currency is no longer applicable, can the enterprise's accounting standard currency be changed. Changes should generally be made at the beginning of the new fiscal year and necessary instructions should be provided in the annual accounting report for changes.

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