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Translation Exposure

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Translation exposure
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates. Related: Transaction exposure.

Accounting Exposure
The risk that a company may suffer a reduction in value because a change in exchange rates reduces the value of its accounts or assets denominated in foreign currencies. That is, if a particular currency in which a company has some assets denominated decreases in value, the value of those assets also decreases with respect to the company's main currency. See also: Foreign exchange risk.


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ABSTRACT The relevance of currency translation exposure on the valuation of single country closed end funds (SCCEFs) is examined, using net asset values (NAVs) and market prices of these funds--the two prices closed end funds have.
Translation exposure exists when the financial statements of a foreign subsidiary must be translated into U.
The strong EPS growth reflected increased pricing, the Company's strategic decision to hedge translation exposures on key currencies, and higher organic sales of brands such as Heinz[R] Ketchup and soup, and Classico[R] pasta sauces.
 
 
 
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