D-2-2 Plural bookkeeping using Exchange Algebra for Value Management

Abstract

We propose bookkeeping by 2n-th entry, in which n pairs of double bookkeeping is done from n viewpoints. It uses exchange algebra. It can be used to control the foreign currency risks, which have much influence on the value management of projects. Foreign exchange accounting is examined, using the case in which one currency is influenced by inflation and another isn't. We show that the bookkeeping using exchange rate of the end of accounting period and putting exchange gain or loss till the end of accounting period is useful and possible. It enables the consistency of multi-currency bookkeeping.