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Currency conversion and invoices from international firms

Is there a proper procedure or standard for the date on which you convert foreign currency invoices? I have seen a British company that sets a currency’s conversion rate for the entire year, and therefore the date of the invoice or its payment does not matter. I have also seen a law department that converts foreign invoices as of the date the law department enters their amounts into its matter management system. I think their reasoning is that they do not know the date in which accounts payable will finally cut a check so they have chosen their own date.

Over the course of the year, currency conversion may not make any material difference, but it would be nice if there were a GAAP standard to apply. (This also makes up one more variation in total legal spending.) Some matter management systems have currency conversion among their capabilities and perhaps you can set the conversion date. (See my post of July 17, 2005 about currency conversion.)