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Translation exposure

Business Transfer taxTransmission mechanism

translation exposure - Related Articles
Identifying and Managing Exposure to Interest and Exchange Rate Risks
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Translation exposure
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.
Translation Risk ...

Translation Exposure - Changes in a corporation's financial statements as a result of changes in currency values. Also known as accounting exposure.

Related: Translation exposure. Transaction fee A charge an intermediary, such as a broker-dealer or a bank, assesses for assisting in the sale or purchase of a security.

Related: translation exposure. Transaction loan A loan extended by a bank for a specific purpose. In contrast, lines of credit and revolving credit agreements involve loans that can be used for various purposes.

Related:translation exposure. Transactions costs The time, effort, and money necessary, including such things as commission fees and the cost of physically moving the asset from seller to buyer.

Risk to a firm with known future cash flows in a foreign currency that arises from
possible changes in the exchange rate. Related:translation exposure.
Exchange Rate, Nominal ...

The amount of the gain or loss produced by translating the financial statements of a foreign subsidiary to their Canadian currency equivalent. Also called translation exposure.
Accounting income ...

Transaction exposure
Definition: [crh] Risk to a firm with known future cash flows in a foreign currency, that arises from possible changes in the Definition: A HREF="/?rd=exchange+rate"exchange rate. Related: Translation exposure.

The resulting foreign currency translation exposure is recorded as an equity account on the balance sheet. At large banks, adjusted foreign currency translation is included as part of equity capital.

See also: Transaction exposure, Forward contract, Cash transaction, Expense, Bank loan

Business Transfer taxTransmission mechanism

 
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