Re: Could SQL-ledger ever support multiple currencies within a company?

[Steve D. <sd...@sw...>]

Jeff Kowalczyk wrote:

> [Jijo] I just thought I'd raise a concern here. I'm from the Philippines
> and here, believe me, the foreign exchange rates are more volatile than
> the rise and fall of the tides. That would be something quite difficult
> to deal with, although I don't think first world countries experience
> such volatility.
>
> [jeff] If a US company did business there, purchased inventory and sold
> goods in the local currency, but reported back to a US concern, would
> everything be accounted for in Phillipine Dollars or US dollars?

The Phillipine based company would keep their books in Phillipine peso's.
Then the foreign currency financial statements are translated to US dollars
before the parent reports results.

Translation rules are very specific, with some items (i.e. monetary assets
like cash and receivables) translated at current rates, and historical cost
based assets and liabilities at historical rates (like a building).
Revenues and expenses are translated at the rate on the transaction date,
or an average for the period.

The parent would make a journal entry to reflect the net translation
effect.  There isn't really a need to handle multiple currencies, because
each operation would and should keep their books entirely in the local
currency.