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RE: Playing Accountant

From: Todd Boyle
Subject: RE: Playing Accountant
Date: Mon, 19 Mar 2001 16:56:54 -0800

> I think it's fairly reasonable to assume that accountants
> would be most interested with the value of conversion at
> times when financial reports are due and/or declared
> "official", such as quarterly and annual reports.

No actually we are most interested in supporting the profitable
operation of the company, anyway we can to justify our paychecks!  

Accordingly we are most concerned with the translations of all 
kinds of payables and receivables of various types and maturities
under TODAY'S rate and the projected nearterm rates the assets 
and liabilities will be realized.  Impacts on budgets and
managment decisions from profit margins as various currency
shifts hit the values of our inventory and other real things
around the world. 

A system that cannot help run the company is worthless and must
be replaced.

For a system that can help run the company, supporting GAAP 
financial reporting is relatively trivial.  And supporting GAAP
financial reporting you would look at XBRL and the total picture,
of how to reduce cost not just currency reporting..

> Regardless, this is a time period issue, and maintaining a
> record of the convertion charts is a Good Idea(tm).  Reports
> could/(should) provide an option to report monetary units of
> measurement relative to the conversion factor applicable for
> the time period on the report.  Likewise, the report
> could/(should) state the effective conversion factor(s) used
> for which time period(s).

Absolutely right.. search Google for FASB 52 Currency Translation
or IASC currency translation, the rules are out there.  To present
a financial statement in home currency you translate most of the
balance sheet at historical rate, most of the income statement
at current rates the transactions were done, and plug the OOB
result ito a balance sheet equity section account called ATA,
Accumulated Translation Adjustment. 
> Disclaimer: ^chewie != accountant. ;-)
> --
> ^chewie

Yeah, but you get by!

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