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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

> 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

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)

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