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bigduckontax, Accountant
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FRS 102 questions. I work UK LLP, and we currently report in

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Hi,
FRS 102 questions.
I work for a UK LLP, and we currently report in GBP. However 95% of our revenue comes from the US so in USD. 95% of expenses are GBP. Partner profits/bonuses all paid in GBP. We want to remain in GBP but could we have to change to USD as our functional currency under FRS 102 ?
Thanks
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
also gross revenue (£15m) is a lot higher than expenses (£4m)
Customer: replied 1 year ago.
But revenue cosists of sending 20 invoices per quarter. expenses consist of paying 200 invoices per quarter so functionally GBP is better.
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to b e able to help you with your question. Your functional currency would remain GBP under FRS 102. Here is the advice from Leavlitt Warmsley Associates Chartered Certified Accountants: 'Reporting entities are required to identify their ‘functional currency’. Paragraph 30.2 says that an entity’s functional currency is the currency of the primary economic environment in which the entity operates. For example, the functional currency of a company based in the UK will be pound sterling. ' So there you are, your LLP should report in GBP. I do hope that I have solved your conundrum for you.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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