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Using The Euro - A Good Bet ?
Oleh:
Estrada, Anette W.
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
Journal of Accountancy vol. 192 no. 6 (Dec. 2001)
,
page 73.
Topik:
EURO
;
euro
;
good bet
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ85.13
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
Since 1999, when the EMU introduced the euro, its member nations have been preparing for January 1, 2002, when they will replace their national currencies with euro notes and coins. (For information about the euro’s introduction, see “Are You Euro - Fluent,” June99, JofA, page 22). Historically, American companies and their EU trading partners have done business in dollars. But since the euro’s introduction and subsequent decline in value relative to the dollar, some European customers have been pressing U. S. suppliers to bill in euros and thus assume the cost and risk of foreign currency transactions. Before agreeing to euro-denominated transactions, though, American companies must examine several aspects of their operations to determine whether that’s feasible for them. This article explains how CPA s can help companies perform that analysis and develop a strategy that meets their needs. To illustrate how companies and their CPA s should proceed, this case study traces the decision - making process a fictitious U. S. magazine publisher used to answer these questions : - How would invoicing European customers in euros affect the company’s business ? - Is the company capable of making the changes necessary to bill in euros? - Can the company afford to make such adjustments ? - What will happen if the company decides not to do business in euros ?
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