Things You Should Know
Experience, the name men give to their mistakes.1
The preceding chapters introduced many of the concepts underlying financial reporting and the effects of changes in exchange rates. Compiling a list of adjectives to describe what we covered, we could start with required, complex, and mundane. To the list we could add confusing, counterintuitive, yawn-inducing, pragmatic, useful, and novel. The chapters provided the framework.
In this chapter, we transition from concepts to practical application. We view the concepts in action, sometimes gracefully applied and sometimes not so gracefully interpreted. In either case, it provides an opportunity to exercise what we discussed in previous chapters and to learn from others’ successes and experiences. By comparison, these practical applications prove much more engaging, perhaps because they are anecdotes. It’s more like watching the movie than reading the book.
The title of this chapter, “Practical Knowledge,” emphasizes the basic nature of the content. If you plan to work with multiple currencies, this practical knowledge should be second nature and part of your basic training.
If you find yourself needing a break from this chapter, try recalculating the frequency tables at the end of Chapter 7 to see if you get the right answers. You’ll soon be back to this chapter. Software exists to handle the more mundane tasks such as calculating the proper frequency. Understand the ...