Euro Impact on Finance

The introduction of the Euro will have a major influence on Transactions currently held on file. It is inevitable that any new transactions to be performed after the base / global currency values and exchange rates have been converted to Euro Values will have a significant impact on any Finance department.

For any business trading in or with a Member State, the base and/or global currency for each Member State Company will change to Euro. Businesses with multiple companies, which are member states, will now have to deal only in Euros as opposed to multiple currencies.

Due to these changes, financial information will have to be viewed differently. Existing transactions will have differences from one company to another as they are relative to the time on which the transaction was processed. Any new transaction will appear the same as they are now, but will appear in Euros.

Some Financial departments may find this to be difficult to comprehend and others may see it as a benefit, and this is indicative of the view of the Euro as a business issue.

Critical Phase Points

Jan 1st 1999

  • Introduction of the Euro and the start of the 3 year transition period for all 11 Member States to be represented in Euros.

Dec 31st 2001

  • End of Transition Period. All database information in NCU to be expressed as Euros. NCUs no longer valid for transactions.

July 31st 2001

  • All NCU notes and coinage to be removed from circulation.

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