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    How To Determine Bookkeeping Standard Currency

    2011/1/19 14:34:00 41

    Bookkeeping Standard Currency Accounting

    I. definition of bookkeeping standard currency


    The bookkeeping standard currency refers to the currency in which the enterprises operate in the main economic environment.

    Popularly speaking, accounting is the business accounting and financial preparation.

    Report form

    Currency used.


    The bookkeeping standard currency is an accounting concept. It is collectively referred to as foreign currency for the accounting of enterprises and the monetary accounting for the currencies used in preparing financial statements.

    We should pay attention to the concept of foreign currency and foreign currency in accounting.

    difference

    Foreign currencies in finance refer to foreign currencies. For China, currencies other than Renminbi are foreign currencies.

    But this is not the meaning of accounting, for example, if a business in Beijing is bookkeeping.

    standard

    The currency may be US dollars. At this time, RMB is the foreign currency in enterprise accounting.


    Two, the determination of enterprise bookkeeping standard currency.


    The selection of the standard currency for enterprise bookkeeping should take into account the following factors:


    The basic factors are income and expenditure, and the auxiliary factor is financing.


    First, from the perspective of daily activities and cash receipts, the selected currencies can play a major role in selling prices of goods and services, and usually use this currency to calculate and settle sales prices of goods and services.


    Two, from the point of view of cash expenditure from daily activities, the currency chosen can affect labor, material and other expenses for goods and services, usually in the currency for valuation and settlement.


    When choosing a bookkeeping standard currency, the currency should be the main economic activity rather than the currency of the enterprise.

    The location of the enterprise is only a form, and the main concern is the economic nature of the business.


    The three is the funds obtained from financing activities and the money used to save money from business activities.


    When determining the bookkeeping standard currency of enterprises, the importance of the above factors is different from the specific circumstances of the enterprises.

    Generally speaking, the first two items should be considered comprehensively, and the accounting standard currency of enterprises can be determined. The third is the reference factor, depending on the extent of the cash impact of the enterprise's income and expenditure.

    Taking into account the first two factors still can not determine the enterprise bookkeeping standard currency, the third factors play an important role in determining the standard currency of enterprise bookkeeping.


    It should be emphasized that only one type of bookkeeping standard currency established by the business administration according to the actual situation is not changed unless the currency is changed, unless there are significant changes in the main economic environment in which the enterprise operates in relation to the determination of the bookkeeping base currency.

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