If internal records are not kept in the same currency as the VAT returns this may cause the VAT authorities to reject the returns. There is no requirement for companies to convert historic information. Companies may choose what to convert depending upon their own circumstances. However where historic information is converted access to it in the original national currency unit form should be retained for the length of time specified in the country for the retention of historic data and records. Because the introduction of the euro is a foreseeable event, normal directors and officers and professional indemnity insurance cover may not provide protection in the event of loss.
Managers have the responsibility to prepare their business for the change to the euro.
Nevertheless those who advise the business or who undertake work that directly relates to the management and efficient running of the company, ought to warn the company of the risks that are being run if adequate and timely preparations are not being made. A failure to do so may lead to losses being incurred for which insurance policies of some companies in some countries may not provide protection because the introduction of the euro may be regarded as a foreseeable event. Extract of Euro Paper no.