U.K. Firms Switch Accounting Methods On Currency Translations

An increasing number of British companies are changing their accounting methods for foreign currency translation to use average exchange rates instead of year-end rates. The change is likely to make corporate treasurers less concerned about using the forward foreign exchange market to guard against a sudden rise of the pound at year-end.

As the rules stand now, British companies have a choice of using either the average or year-end exchange rate. However, in keeping with this year's rise in