Foreign Currency Policy

The purpose of this policy is to establish uniform policies for recording foreign currency transactions and translations.

In this sample, corporate accounting maintains a functional currency questionnaire to determine the functional currency for recording purposes; plants are required to complete the embedded form to help corporate accounting determine the proper currency for both intercompany and external transactions to be entered into the accounting system; transactions are entered into the system in the currency in which they are denominated; and revenues and expenses are translated at the average exchange rate for the period.