1. According to them, competitiveness, and not just past currency effects, is a key factor to take account of in the measurement of managerial performance. Their proposal is to measure deviations from budgeted pre-tax net operating margin above those which were due to unexpected changes (contingent budgeting, a generalized form of flexible budgeting, contingent on the state of the world, allowing for the review of exchange rates). They also call attention to the fact that exchange rates influence competitiveness of a domestic unit that is not engaged in foreign operations but is threatened by imports;is far more complex than multi-domestic competition faced by multinationals in the Sixties and Seventies
2. Accounting Standards Committee;Statements of Standard Accounting Practice,1983