The European Commission has also published a report on the accounting aspects of the euro which recommends solutions for these issues. Exchange gains and losses The irrevocable fixing of exchange rates crystallises unrealised foreign exchange positions. This could generate profits or losses resulting from currency movements between the moment the foreign exchange position is acquired and the start of Economic and Monetary Union. The fiscal treatment of these gains and losses differs from country to country. Companies need to enquire about the fiscal treatment of these expenses.
Several countries apply a favourable fiscal treatment.
Rounding, thresholds As for any foreign currency, converting amounts into euro leads to rounding errors. These errors have to be accounted for and therefore necessitate additional employee attention. Information Technology systems often include automatic matching systems and therefore also require adjusting. Fiscal and social thresholds may be rounded when they are converted to euro. The euro may cause certain assets to become obsolete.