The currency in which the financial statements of an entity are prepared and presented. It is the currency that an entity uses to record and measure its transactions and reports the financial results to its users of financial statements. An accounting currency is used to present the relevant financial information about an entity’s operations and activities in its accounting records (including financial statements). Typically, this currency is the currency of the country in which the entity operates. In general, it is the monetary unit of account of the primary economic environment where the entity carries out its transactions and conducts its business with the other economic agents within that environment.

The currency is not an accounting currency to an entity is known as a foreign currency.

In multiple context, an accounting currency may be also referred to as a functional currency, base currency, reporting currency, presentation currency, primary currency, etc.