lasuk
commented
2 months ago Let's also implement other name changes at the same time:
vat_code->tax_code(motivation: more generic; VAT is not common in US, Canada and Japan use a differing terminology)fx_adjustment->revaluation(motivation: revaluation is more precise than adjustment, the concept can be applied beyond exchange rate, hence removing 'FX' from the method name- 'account_chart()' -> 'accounts()' ,
mirror_account_chart->mirror_accounts, standardize_account_chart->standardize_accounts,MemoryLeddger._account_chart->MemoryLeddger._accounts`
Task: Replace the term 'base_currency' in our code base by the more commonly used term 'reporting_currency'.
Motivation:
Click to expand ChatGPT thread
### User Question Which term is most common in accounting to designate the currency, in which a company's balance sheet and income statement are stated? --- ### Assistant Response The most common term used in accounting to designate the currency in which a company's balance sheet and income statement are stated is **"functional currency."** The **functional currency** refers to the primary currency of the economic environment in which a company operates and conducts its business. It is used to record financial transactions in the financial statements, such as the balance sheet and income statement. In some contexts, the term **"reporting currency"** may also be used, especially when referring to multinational companies that consolidate financials from multiple subsidiaries operating in different currencies. The reporting currency is the currency in which the parent company presents its consolidated financial statements. So, **functional currency** and **reporting currency** are the key terms, with functional currency being the primary one. --- ### User Follow-up How about "main currency" or "base currency"? --- ### Assistant Response The terms **"main currency"** and **"base currency"** are not commonly used in accounting to refer to the currency in which a company's financial statements are prepared. Instead, these terms are more frequently encountered in contexts such as **foreign exchange trading** or **investment portfolios**. - **Main currency** is a less formal term and may be used in casual conversation to describe the primary currency a company deals with, but it is not standard in accounting terminology. - **Base currency** is typically used in foreign exchange markets to refer to the first currency in a currency pair. For example, in the currency pair USD/EUR, the USD is the base currency, and the EUR is the quote currency. It doesn't commonly refer to the currency in which financial statements are prepared. In formal accounting contexts, **functional currency** and **reporting currency** are the more accurate and standard terms used to describe the currency of a company's financial statements.