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Re: Playing Accountant

From: Neil Tiffin
Subject: Re: Playing Accountant
Date: Mon, 19 Mar 2001 12:40:00 -0600

At 10:10 AM -0800 3/19/01, Derek A. Neighbors wrote:
So my question is should we allow a way to account for such factors in our reporting etc?? Kind of a monetary unit restatement? For what its worth Im not an accountant, but would like to hear opinions.

This is a complicated issue, but good to have it raised now.

Currency, can not IMHO opinion be treated like another unit of measure for the exact reason you define, its reference to other currencies changes over time.

So in gnue-config we have 2 very similar definitions in currency.gcd and units.gcd.

Now to your questions.

Reporting and Forms should been designed to report and display in the currency in the database, currency of the user, or in another currency defined at the time of display or report generation.

To define this currency you also need to define an effective date and have input into the currency table an effective date and currency exchange value. Some companies do this weekly, some monthly, but most do not do it daily.

In accounting money should be kept in the database in the currency of the physical transaction. I believe this is legal requirement in most areas, but in either case if you don't do this you end up with all kinds of problems.

Deciding when to change money into another currency (for consolidation purposes in international operations) is a tax consideration and will change within the laws of the taxing authorities. So this is done through the consolidation policy.

Of course, I'm not an accountant so I listening for their opinion also.


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