Leslie posted some excellent comments, which touched on the exchange rates to use on intercompany transactions, a very interesting and complex topic. I have discussed this at length with Seamus Moran many times, he has educated and enlightened me and I use an example of his here.
Consider Top Hat Global Corp
- The group reports to shareholders in Monopoly Money – MYM.
- Subsidiary N is a plant, and is located in Elbonia, where they use the Elbonian Enigmatic Krown, the EEK.
- They sell in all of the EUR countries.
- They ship from the plant to all of the EU countries. Continue reading “What Exchange Rate to use for Intercompany”