The net currency effect, when considering both transaction and translation exposure
as well as volatility reductions, contributed somewhat positively to the operating income.
Such companies typically face three different types of FX exposure: transaction exposure, translation exposure
and economic exposure.
Concentration on cash flow exposures makes economic sense but emphasis on pure translation exposure
The Group's policy is to align interest costs and operating profit of its major currencies in order to provide some protection against the translation exposure
on foreign currency profits after tax.
Foreign exchange rate fluctuations affect a multinational through translation exposure
, transaction exposure, and economic exposure.
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.
exists when the financial statements of a foreign subsidiary must be translated into U.
12 Managing Translation Exposure
and Accounting for Financial Transactions.
Our Automotive segment absorbs most of the company's translation exposure
Through the purchase of options, we created a "stop loss" on the translation exposure
arising on our U.
PPOL monitors its currency exposures but does not hedge its translation exposures
primarily due to the long-term nature of its investment.
We hedge only transactions we're very certain about and focus on hedging transaction exposures instead of translation exposures
, primarily because we view the latter as long term.