Re: Rate Types

Rate types are need to comply the FASB 52. You need average rates, historical 
rates, month end rates, spot rates, etc.  Different parts of the balance sheet 
are converted using different methods and rates. The balance sheet is converted 
using month end rates on the ending balance. Income statement accounts are 
converted using a monthly average rate on the monthly activity. Some balance 
sheet accounts are converted using a historical rate that may not change.

So different rate types are needed to make all of this happen.

Eric Elsberry

> V405CD.  We are using Multi-currencies in a limited basis right now, and are
> looking to expand it's use.  A question has come up that I can't answer real
> well: "What functional purpose is served by specifying different rate types?"
>
> Can anyone clarify this for me?
>
> Bill
>
>
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