Multinational Accounting. Many companies, large and small, depend on international markets for supplies of goods and for sales of their products and services. This chapter and chapter 12 discuss the accounting issues associated with companies that operate internationally.
DER = U.S. dollar equivalent value 1 FCU
IER = 1 FCU
U.S. dollar equivalent value
This is an example of the strengthening of the US dollar. Companies who import goods from foreign countries want a strong dollar. However, a strong dollar is not good for companies who want to sell their goods abroad, like a John Deere who wants to sell tractors in Europe.
This is an example of the weakening of the US dollar. Companies who export goods from the US want a weak dollar. However, a strong dollar is not good for companies importing goods from abroad.