Completing your T2 return - Functional currency

Corporations filing in functional currency should continue to use the standard CRA-printed T2 return and schedules or a CRA-approved commercial software package. You must file a Form T1296, Election, or Revocation of an Election, to Report in a Functional Currency, in order to submit a functional currency return.

Line 79

On line 79, state the functional currency used.

Line 840

On line 840, enter the amount in Canadian currency.

Line 898

On line 898, enter the amount in Canadian currency.

Fixed amounts

Fixed amounts on the return must be converted to functional currency, using the exchange rate on the first day of the tax year. When determining the small business deduction limit, convert the $11,250 used to calculate amount E and the $10,000,000 used to calculate the amount at line 415.

The exchange rate to be used in converting the amounts is defined under subsection 261(1) of the Income Tax Act. Use the Bank of Canada noon rate, to 4 decimal places, of the particular day. If no such rate is quoted, use the rate from the closest preceding day for which a rate is quoted.