Prudential Regulation Authority Rulebook

1.

For the purposes of this Chapter and Chapter 2, ‘reporting currency’ shall be:

1. (a) for individual reporting, the currency used for the preparation of the firm’s financial statements;
2. (b) for group reporting, the currency used for the preparation of the consolidated financial statements.

2.

Data points with the data type ‘monetary’ must be reported in the reporting currency, which requires the conversion of any other currency into the reporting currency unless otherwise stated in this Chapter.

3.

When expressing the value of any asset or liability denominated in a currency other than the reporting currency, the value must be converted into the reporting currency as if the conversion had taken place at the closing rate on the last day for which the appropriate rate is available in the reporting period to which the asset or liability relates.

4.

1. (a) When expressing the value of any income or expense, the value must be converted into the reporting currency using such basis of conversion as that used for accounting purposes.
2. (b) When expressing the values of historical data denominated in a currency other than the reporting currency, such values related to previous reporting periods must be converted into the reporting currency based on the closing rate on the last day of the period being reported for which the conversion rate is available.

5.

The conversion into the reporting currency must be calculated by applying the exchange rate from the same source as that used for the firm’s financial statements in the case of individual reporting or for the consolidated financial statements in the case of group reporting.