HAdams_FunctionalCurrency_031411

HAdams_FunctionalCurrency_031411 - so that recent...

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Functional Currency 1 RUNNING HEAD: FUNCTIONAL CURRENCY Functional Currency Helen Adams Rasmussen College
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Functional Currency 2 Functional Currency Introduction SIMCO Commercial Corporation (SCC) is located in Godalming, United Kingdom (U.K.). SCC is owned by an investment group located in London and all corporate functions are performed in Godalming. However, manufacturing operations occur in both the U.K. and South Africa. To form a final decision that which judgment will produce better result, an analysis over both currencies is necessary for analysis.
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Functional Currency 3 Explanation The Rand is the currency of South Africa since the republic in 1961 , when the South African Pound replaced. The name is derived from the Witwatersrand , South Africa's treasury of mineral riches. Just after the 11 September 2001 attacks , the Rand has been a dramatic loss against the U.S. Dollar resulted. In December 2001 the Rand a record low range against a USD = 13.85 ZAR, after that the Rand recovered and more than 50% of its value is recovered, so much
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Unformatted text preview: so that recent reinforcements in the currency (from R13, 84 per dollar in 2001 to below R6 per dollar in 2005) large losses for some companies means and many work as a result lost. The Euro is the currency of the European Economic and Monetary Union , a policy of the European Union (EU). According to the U.S. dollar , the euro is the most important reserve currency in the world. Myriad countries use this currency and the graph clearly depicts that over the years the euro has been stable and shows a gradual upwards trend (Sheldon, 2003). Functional Currency 4 Conclusion Comparison of both currency clearly points out that euro should be used as a functional currency. Any business will surely need a kind of stability in the business but as there have been drastic changes in South African Rand then Euro is the best choice for the company. Functional Currency 5 References Ross, Sheldon M. (2003), Introduction to Probability Models, 8th ed . San Diego, CA:Elsevier....
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This note was uploaded on 04/10/2011 for the course MAN 3504 taught by Professor Caberto during the Spring '11 term at University of Phoenix.

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HAdams_FunctionalCurrency_031411 - so that recent...

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