Multicurrency accounting revisited
Article Abstract:
Foreign exchange or multicurrency accounting continues to be a viable method for international business enterprises. The Statement of Standard Accounting Practices 20 prescribes that, for individual companies, transactions must be translated at the rate on the day the transaction is made or, for currencies that do not fluctuate widely, an average may be used if non-monetary items are translated at the rate of the day of the transaction. This is the method used with multicurrency accounting. SSAP 20 requires the taking of gains and losses to go to the profit and loss account with the exception of gains and losses involved with foreign currency, which in some cases may be taken to reserves. Multicurrency accounting fits these requirements and gives the company using it advantages and flexibility over other accounting methods. A step by step summary of procedures demonstrates the simplicity of this accounting method.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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Forward look at a possibly backward business method
Article Abstract:
The discounted cash flow technique of investment appraisal is often utilized because of its simplicity and usefulness in the short run, but perhaps at the sacrifice of long term goals. It should only be used after careful consideration that short term ends are important to the matter in question. It is too often used undiscriminatingly without regard of the long term effects on the business.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1986
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Learning from experience
Article Abstract:
Techniques of accurately reporting corporate financial instruments are analyzed. Topics include reasons for accidental misreporting of financial instruments, corporations' reasons for possessing financial instruments, and disclosure of hedged funds.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2000
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