Tải bản đầy đủ - 0 (trang)
PART I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE

PART I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE

Tải bản đầy đủ - 0trang

ALTERNATIVE MEASURES OF FOREIGN

EXCHANGE EXPOSURE

2. Transaction Exposure:

occurs from changes in the

value of foreign currency

contracts as

a result of

exchange rate

changes.



6



ALTERNATIVE MEASURES OF FOREIGN

EXCHANGE EXPOSURE

3. Operating Exposure

arises because exchange rate

changes may alter the value of

future revenues and costs.



7



ALTERNATIVE MEASURES OF FOREIGN

EXCHANGE EXPOSURE

Economic Exposure



= Transaction + Operating

Exposures



8



PART II. ALTERNATIVE CURRENCY

TRANSLATION METHODS

I. FOUR METHODS OF TRANSLATION

A. Current/Noncurrent Method

1. Current accounts use

current exchange rate for

conversion.

2. Income statement accounts

use average exchange

rate

for the period.

9



ALTERNATIVE CURRENCY

TRANSLATION METHODS

B. Monetary/Nonmonetary Method

1. Monetary accounts use

current rate

2. Pertains to

- cash

- accounts receivable

- accounts payable

- long term debt

10



Tài liệu bạn tìm kiếm đã sẵn sàng tải về

PART I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE

Tải bản đầy đủ ngay(0 tr)

×