Show me the (new) money.The euro made its debut with the new year, but it's going to be a long introduction (see sidebar), giving residents in member nations ample time to adjust to a one-currency continent. Meanwhile, U.S. companies with overseas operations or trading partners should look at several issues, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Anette W. Estrada, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , who works with international businesses at BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. , LLP LLP - Lower Layer Protocol : * Since the transition period is relatively long, CPAs should note how quickly European affiliates and representatives make the switch. Companies not moving quickly may lose market share to those who make the switch now, so CPAs might want to advise clients with European operations to move to the euro as soon as possible. Some sectors are moving faster than others: The automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. converted as of January 1, 1999, for example, so a supplier who has not yet converted is in trouble. * U.S. companies need to have flexible accounting systems to handle the euro as well as the legacy (national) currencies. * Given the fact that the euro is expected to compete strongly with the dollar in the world markets, European companies may increasingly insist on denominating their transactions in euros. This will shift the exchange risk and cost of foreign currency conversions to the U.S. company. Estrada did not anticipate income tax consequences, however, except for companies with certain straddles or hedges. For the immediate future, many CPAs are concerning themselves with the specifics of the second point, above. "Triangulation triangulation: see geodesy. The use of two known coordinates to determine the location of a third. Used by ship captains for centuries to navigate on the high seas, triangulation is employed in GPS receivers to pinpoint their current location on earth. " is the process of handling computerized monetary transactions during the launch period. For example, a company operating in France and Germany has to take a franc value, convert it to a euro, then take the euro and convert it to mark value. Does the firm and does the client have software that can handle this? A complete, free source of euro information and help is available at the Web site of the Federation des Experts Comptables Europeens (FEE), www.euro.fee.be. RELATED ARTICLE: Euro Stats at a Glance Member countries of the European Monetary Union European Monetary Union An agreement by participating European Union member countries that includes protocols for the pooling of currency reserves and the introduction of a common currency. (Euroland Euroland or Eurozone Noun the geographical area containing the countries that have joined the European single currency Euroland n → Eurolandia ): Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain
Euro timetable
1/1/99 Companies and individuals may use euro or national
currency. However, no coins or printed currency are yet
available so euro transactions are limited to credit
cards, bank drafts, etc. Companies can prepare financial
statements in either currency, but some taxing authorities
are not yet able to process euro returns.
1/1/02 Bank notes and coins issued. All taxing authorities can
now handle euro.
6/30/02 All EMU national currencies become obsolete.
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