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Re: Playing Accountant
From: |
Gerd-Christian Michalke |
Subject: |
Re: Playing Accountant |
Date: |
Tue, 20 Mar 2001 09:14:20 +0100 (MET) |
On Mon, 19 Mar 2001, Derek A. Neighbors wrote:
> > If you track expenses using dollars, and attach dates to transactions
> > and/or prices, then the problems can get deferred until _reporting_
> > time. The critical thing is to track enough information to make sure
> > that reporting can be done unambiguously.
>
> Yes same goes for chart of account changes etc in my book.
>
> > Quite frankly, the only time anybody plays with the differing
> > standards on this is when they are undergoing vast amounts of
> > inflation. A few percent per annum doesn't count :-).
helas, it _does_ matter. Maybe not in the USA, but well in Europe. And not
taking into account these differences can bring you quite a lot of
trouble.
>
> Yes and with recent situations like Russia and Mexico I think that bears
> some relevance due to our multi national aspect.
well. Anyway, if you do accounting, you have to bear in mind the exchange
rate, and only if it is some %. 1% on a billion $ is quite a lot. And,
please, do not forget that in europe we have the euro which has deprecated
quite a lot (from 1.10$ to 0.95$. So don't forget this one.
I have really no idea about the accounting in the USA, but I guess it can
be quite different from the one used in Europe (and even there, accounting
differs from one country to the other).
Any exchange deprecation/appreciation is accounted (when depends on the
actual kind of the amount: be it a debt, or an inventory or something
else).
But then, you have to save the exchange rate when the operation (let's say
a selling of goods) was done, and the exchange rate when the rate
difference was taken into the accounts.
>
>
> Derek Neighbors
>
>
Gerd C. Michalke (Belgium/Europe)
Re: Playing Accountant, Derek A. Neighbors, 2001/03/19
Re: Playing Accountant, Rich Bodo, 2001/03/19
RE: Playing Accountant, Todd Boyle, 2001/03/19