accounting exposure

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 ?
Accounting exposure includes all the items on the profit and loss account or balance sheet that are affected by changes in the exchange rate.
Using responses to the ten accounting exposure drafts receiving the highest public responses, the active role of Big Eight (now Big Five) firms is underscored.
Translation is governed by accounting conventions and therefore also is referred to as accounting exposure.
Industry professionals discuss the implications of the revised lease accounting exposure draft due in 2012 and the changes it will bring to the global leasing markets.
PHILADELPHIA -- The Financial Accounting Standards Board (FASB) and its international counterpart, the International Accounting Standards Board (IASB) continue to redeliberate some of the more complex and controversial aspects of the lease accounting exposure draft.
Risks addressed in this context include the economic risks from payouts under the guarantees and the loss/volatility of revenues, accounting exposure and operational risks.
A focus on living benefits that fall under mark-to-market accounting ignores other living benefits, which generate identical economic exposures but different accounting exposures, such as income benefits or withdrawal benefits for life.