What is Translation Exposure

Translation exposure is used in the context of international foreign exchange markets, translation exposure refers to the risk which a company or firm faces when its assets and liabilities are denominated in a foreign currency. It can be better understood with the help of an example, suppose a USA based company has assets and liabilities denominated in euro than if euro falls or rises with respect to dollar in foreign exchange market than the company has to record the profit or loss arising out of such fluctuation in the books of account. It is also known as accounting exposure.

0 comments… add one

Leave a Comment


Related pages


entry for prepaid expenseimportance of mixed economyfeatures of capital budgeting decisionadvantages of an autocratic leaderzero based budgeting pros and consfull form of bheladvantages and disadvantages of borrowing money from a banknormal goods inferior goodsadvantages of cashless policyadvantages and disadvantages of stock market investingdifferentiate between wholesaler and retailerwhat are characteristics of a command economybank withdrawal slipautocratic coachingbank loan and bank overdraftexplain difference between systematic unsystematic riskadvantages of mergerslaw of diminising marginal utilitymateriality conventionadvantages of barter systemservice performed but unbilleddisadvantage of specializationexample of a conglomerate mergerwholesale banking definitiontraditional economy country examplesthe merits and demerits of internetdirect quotation currencyconvention of full disclosure in accountingexplain autocratic leadershipwhat is the lifo methodfactors that influence elasticity of demandwhat is the main difference between socialism and capitalismconsignor and consigneeadjusting journal entries unearned revenueadvantages of industrialisationpositives of urbanizationfund flow and cash flowlow of diminishing marginal utilitydisadvantages of horizontal integrationactivity ratios formuladefinition of indirect quoteadvantages and disadvantages of fifoinvestment appraisal methods advantages and disadvantagesvertical analysis of the balance sheetbarder and tradeexample of substitution effectstatutory liquidity ratio in indiawho is autocratic leaderelasticity of demand with examplescapitalism and socialism differencesbank withdrawal slipexamples of horizontal mergersmanaged float currencylaws of diminishing returnsparticipants in derivative marketdisadvantages of hedge fundshow does the barter system workunitary elastic exampledifference between accounts payable and accounts receivablewhat is journal entry for prepaid expensesdisadvantages of job specializationmateriality accounting conceptexample of prestige pricingadam smith absolute cost advantage theorycommand economy definition for kidsadvantages and disadvantages of ordinary sharesdisadvantages of cash flow forecastcost accounting fifo methoddefine a traditional economymix of capitalism and socialismwhat is an unqualified audit reportfeatures of perfect competition in economicsstable dividend policy definitionwhat is a withdrawal slipadvantages and disadvantages of importingcommodity swapsdefinition of centrally planned economylimitations of managerial economicsadvantages and disadvantages of organizational structurecurrent asset turnover ratiohindi meaning of omissionwhat is normal and inferior goodsproblems of barter systemnormal and inferior goods