European Economic & Monetary Union: Firms Need to Prepare for Multi-Currency Accounting; Ben Adams, Managing Director of ReQuest Systems, Outlines the Implications of the Euro for UK Businesses and Their Financial Software

By Adams, Ben | The Birmingham Post (England), October 20, 1998 | Go to article overview

European Economic & Monetary Union: Firms Need to Prepare for Multi-Currency Accounting; Ben Adams, Managing Director of ReQuest Systems, Outlines the Implications of the Euro for UK Businesses and Their Financial Software


Adams, Ben, The Birmingham Post (England)


For many UK companies, the headache this New Year's Day will not come courtesy of alcohol.

As many are aware, January 1, 1999 is the day on which European Monetary Union is to be introduced.

It is also the deadline for installation of multi-currency accounting systems.

Keen to take advantage of the imminent transparency of prices between suppliers, the majority of blue-chip companies already have the requisite computer accounting upgrades well in hand.

However, at risk of generalisation, there is one sector of British business which still appears fairly complacent to the economic upheaval ahead - small and medium-sized enterprises .

What many of them seem to be overlooking is the fact that the decisions of their multi-national customers and suppliers will force them to deal with foreign currency transactions, even though they may only trade domestically.

Partners of Rover, Philips and Siemens, among others, may find that they are dealing with purchase invoices in euros.

Even price lists and sales invoices may need to be generated in euros.

To be fair, the large majority of SMEs already trading overseas do understand the impact that EMU will have on them.

However, there may well be some unexpected hiccups as accountancy systems fail to pick up on issues such as "triangulation".

To ensure consistent calculation of currency values, the European Commission has insisted that conversions are made first to the euro and then to the participating currency.

This is the two-step procedure called "triangulation" and very few multi-currency accounting systems have been upgraded to handle it.

Accountancy software, however, should not be the only EMU concern under the umbrella of financial administration.

Companies should also be considering the link between the way they arrange their banking and their nominal ledger systems. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

European Economic & Monetary Union: Firms Need to Prepare for Multi-Currency Accounting; Ben Adams, Managing Director of ReQuest Systems, Outlines the Implications of the Euro for UK Businesses and Their Financial Software
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.