RE: Playing Accountant

[Brooks R. Robinson]

> At 11:54 AM -0800 3/19/01, Todd Boyle wrote:
> >OAG also binds the currency with a numeric amount in a single object.
> ><!ELEMENT AMOUNT (VALUE, NUMOFDEC, SIGN, CURRENCY, DRCR)>
>
> I understand all of these except DRCR.  What is this?
>
> Neil
> address@hidden

This would be Debit <DR> and Credit <CR>.  Don't ask....

As far as an dealing with currency, etc.  Let me explain.. No there's to
much to explain... let me sum up...

For international business dealing with multiple currencies, I believe the
basic rules are:

1.      Capture and report all transactions in the local (functional) currency 
at
actual at the time with a date
        (U.S. = USD, U.K. = GBP, Germany = DM)

2.      Provide a translation table (by date) to cross check local (functional)
currency into foreign (reporting) currency

3.      Provide ability to tie #1 to #2.

4.      When #1, #2, and #3 are done, you end up with a "foreign currency
translation adjustment", which ends up as an adjustment to retained
earnings.

5.      Don't worry about inflation, leave it to the true bean counters.

HTH,

Brooks


Brooks R. Robinson
ERP Systems Administrator-Financial/Cost Accountant
Chance Industries, Inc.
4219 Irving
Wichita, Kansas  67207
Work:   (316)945-6555x2632
Cell:   (316)841-0191
Email: address@hidden