Presentation currency
In one sentenceThe currency in which a business's financial statements are presented; it may differ from the currency in which most of its activity is conducted (the functional currency).
Simply put
Most Saudi businesses deal in riyals and present their statements in riyals, so the two currencies are the same. But a group with branches in several countries may choose one currency in which to present all its results.
When the presentation currency differs from the functional currency, the figures are translated under IAS 21, and translation differences appear in other comprehensive income.
Example
A Saudi company has a subsidiary in Egypt that keeps its books in Egyptian pounds, so the subsidiary's statements are translated into riyals before consolidation, because the riyal is the presentation currency of the consolidated statements.
Don't confuse it with
Functional currencyThe functional currency is determined by the economic reality of the activity, while the business can choose its presentation currency.