Professional Documents
Culture Documents
Multinational
Accounting:
Foreign Currency
Transactions and
Financial
Instruments
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
Multinational Accounting
IER = 1 FCU
U.S. dollar equivalent value
Exchange Rate Mnemonic
• A mnemonic to help remember the difference in
exchange rates is to note that the U.S. dollar is
the numerator for the direct rate (the foreign
currency unit is in the denominator), and the
foreign currency unit is in the numerator for the
indirect exchange rate (with the U.S. dollar in the
denominator).
End of Chapter
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.