Using Currency

Enterprises that do business internationally require additional accounting considerations and added complexity. This complexity arises from doing business in different currencies and the obligation to follow different reporting and accounting requirements. Some fundamental requirements for an international enterprise include:

• Conversion of foreign currencies to the local currency.

• Conversion of multiple currencies into one currency for reporting and comparisons.

• Obligation to regulations mandated in the countries of operation.

• Continued evaluation of currencies due to fluctuation in exchange rates.