Article Abstract:
The introduction of a single European currency will mean considerable costs for companies that want to adjust their operations and information systems to the euro. Such expenses could include personnel training, administrative planning, communication of information to customers, and hardware and software modification and/or adaptation. The UK Accounting Standards Board's Urgent Issues Task Force has addressed the accounting questions raised by the impending introduction of the euro. Among the issues considered are the accounting treatment of euro-related costs, and the impact of the single currency on cumulative foreign exchange translation differences previously recognized and on anticipatory hedging instruments. These issues are discussed.
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Article Abstract:
The International Accounting Standards Committee has issued an exposure draft of a proposed accounting standard for financial reporting in hyper-inflationary economies. The standard describes the characteristics of a hyper-inflationary economy and explains the impact of price changes on balance sheets and income statements. Procedures are given for restating historical cost financial statements and current cost financial statements.
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Article Abstract:
International Accounting Standard (IAS) 29, Financial Reporting in Hyperinflationary Economies, is presented. IAS 29 is applicable to the financial statements of companies reporting in a hyperinflationary currency.
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