Translation risk - Revision history

imported>Doug Williamson: Categorise.

2018-02-28T16:39:51Z

Categorise.

← Older revision		Revision as of 16:39, 28 February 2018
Line 38:		Line 38:
	===Other links===		===Other links===
	[http://www.treasurers.org/node/9528 Treasury essentials: Translation Risk, Will Spinney, The Treasurer, Nov 2013]		[http://www.treasurers.org/node/9528 Treasury essentials: Translation Risk, Will Spinney, The Treasurer, Nov 2013]

			[[Category:Financial_risk_management]]

imported>Doug Williamson: Simplify first definition.

2017-03-18T16:17:12Z

Simplify first definition.

← Older revision		Revision as of 16:17, 18 March 2017
Line 3:		Line 3:
	1.		1.

	Translation risk ~~refers~~ to foreign ~~exchange or currency risk~~.		Translation risk relates to foreign currencies.

	It is the risk of changes in a firm’s reported financial statements, or related financial ratios or borrowing covenant compliance, resulting from changes in the rates at which foreign currency-denominated assets, liabilities, income or costs are translated into the reporting currency.		It is the risk of changes in a firm’s reported financial statements, or related financial ratios or borrowing covenant compliance, resulting from changes in the rates at which foreign currency-denominated assets, liabilities, income or costs are translated into the reporting currency.

imported>Doug Williamson: Expand to deal with secondary effects.

2017-03-18T15:41:10Z

Expand to deal with secondary effects.

← Older revision		Revision as of 15:41, 18 March 2017
Line 1:		Line 1:
	''Foreign exchange risk''		''Foreign exchange risk''

	Translation ~~exposure~~ refers to foreign exchange or currency risk. It is the risk of ~~adverse effects~~ in a firm’s reported financial statements, or related financial ratios or borrowing covenant compliance, resulting from changes in the rates at which foreign currency-denominated assets, liabilities, income or costs are translated into the reporting currency.		1.

			Translation risk refers to foreign exchange or currency risk.

			It is the risk of changes in a firm’s reported financial statements, or related financial ratios or borrowing covenant compliance, resulting from changes in the rates at which foreign currency-denominated assets, liabilities, income or costs are translated into the reporting currency.

	This applies most commonly to the translation of monetary assets and liabilities and to the consolidation of non-domestic subsidiaries into group financial statements.		This applies most commonly to the translation of monetary assets and liabilities and to the consolidation of non-domestic subsidiaries into group financial statements.

	If the changes in exchange rates were to reverse, the effects on the related amounts in the financial statements would normally also reverse.		If the changes in exchange rates were to reverse, the effects on the related amounts in the financial statements would normally also reverse.


			2.

			The risks in 1. above, together with any secondary adverse effects, resulting from the changes described above.

			Potential secondary adverse effects may include breach of financial ratios in loan covenants, and consequential costs.



Line 16:		Line 29:
	* [[Current/non-current method]]		* [[Current/non-current method]]
	* [[Economic risk]]		* [[Economic risk]]
			* [[Financial covenant]]
	* [[Foreign exchange risk]]		* [[Foreign exchange risk]]
	* [[Income statement exposure]]		* [[Income statement exposure]]

imported>Doug Williamson: Link with Economic risk, Pre-transaction risk and Transaction risk pages.

2017-03-17T15:57:22Z

Link with Economic risk, Pre-transaction risk and Transaction risk pages.

← Older revision		Revision as of 15:57, 17 March 2017
Line 15:		Line 15:
	* [[Currency risk]]		* [[Currency risk]]
	* [[Current/non-current method]]		* [[Current/non-current method]]
	* [[Economic ~~exposure~~]]		* [[Economic risk]]
	* [[Foreign exchange risk]]		* [[Foreign exchange risk]]
	* [[Income statement exposure]]		* [[Income statement exposure]]
	* [[Transaction ~~exposure~~]]		* [[Pre-transaction risk]]
			* [[Transaction risk]]


	===Other links===		===Other links===
	[http://www.treasurers.org/node/9528 Treasury essentials: Translation Risk, Will Spinney, The Treasurer, Nov 2013]		[http://www.treasurers.org/node/9528 Treasury essentials: Translation Risk, Will Spinney, The Treasurer, Nov 2013]

imported>Doug Williamson: Expand to become main / preferred version.

2017-03-17T15:54:12Z

Expand to become main / preferred version.

@@ Line 1: / Line 1: @@
-Also known as Translation exposure.
+''Foreign exchange risk''
 == See also ==
-* [[Translation exposure]]
+* [[Accounting exposure]]

imported>Doug Williamson: Layout.

2016-06-22T12:05:00Z

Layout.

← Older revision		Revision as of 12:05, 22 June 2016
Line 1:		Line 1:
	Also known as Translation exposure.		Also known as Translation exposure.


	== See also ==		== See also ==
	* [[Translation exposure]]		* [[Translation exposure]]

imported>Administrator: CSV import

2012-10-23T14:20:53Z

CSV import

New page

Also known as Translation exposure.

== See also ==
* [[Translation exposure]]