On the Measurement of Foreign Income.

This article focuses on the non-dollar revenues and expenses of corporations in the U.S. the author states that in computing the dollar equivalent of foreign currency operating earnings, the objective was defined as results which would have obtained had each transaction affecting periodic income actually been executed in dollars. He explains that if there are many individual transactions, resort to average rates is necessitated by practical considerations. The article reports that the average monthly rate should be applied to sales revenues and expenditures for both current expenses and inventories.