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August 15, 2007

Comments

Andy

Wow, thanks for taking a recent accounting graduate’s blind devotion to FASB pronouncements into a bright light allowing me to see. This is the most beneficial thing I’ve read on accounting in a while. It seems the FASB should not have written their statements of financial concepts, not because they are wrong, because the FASB can’t adhere to them. Thank you for writing frankly and getting my critical thinking juices flowing.

Gerardo Ramirez

FAS 52 is very ambiguous. I am currently trying to figure out if the functional currency of our business is the US dollar. Despite being a Central American companies (with subsidiaries in Mexico, South America, the Caribbean) we use the dollar as the main currency and almost all transactions are handled in US Dollars. So I say that our functional currency is the dollar. The auditors however come in and say its not that easy and that I should apply FAS 52. There are some tests in this statement which are supposed to give guidance, but they rather confuse me a lot.

Does anyone know any site that would provide some guidance as to how to use those confusing economic substance criteria detailed in the statement?

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