accounting exposure

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Accounting exposure

The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates.

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.

accounting exposure

see EXCHANGE RATE EXPOSURE.
References in periodicals archive ?
However, as a result of these investments, exposure to country and foreign exchange translation risks has risen.
This means that foreign exchange transaction risks and foreign currency translation risks would have to be considered in preparing financial statements (Sorensen, 2007).
The company said that it has launched a new passive FX hedging service that has the potential to protect clients' investments against currency translation risks.
In a tale which can seem so fleeting and intangible, which plays with the reader's ability to grasp the true nature of events, a translation risks either missing the point or seeming too thin.

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