Page 212 - AFM Integrated Workbook STUDENT S18-J19
P. 212
Chapter 10
9.2 The tabular method for multilateral netting and matching
Step by step approach:
1 Set up a table with the name of each company down the side and
across the top.
2 Input all the amounts owing from one company to another into the table
and convert them into a common (base) currency (at spot rate).
3 By adding across and down the table, identify the total amount payable
and the total amount receivable by each company.
4 Compute the net payable or receivable, and convert back into the
original currency.
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