translation gain

Translation Gain

The gain that occurs when one exchanges one floating currency for another, then back into the first currency after it has become weaker. For example, suppose one has 1,000,000 U.S. dollars and exchanges them for 500,000 British pounds; this means the exchange rate was two dollars per pound. Later, if one still has those 500,000 pounds when the exchange rate is three dollar per pound and exchanges them back to dollars, suddenly one has $1,500,000. In this case, the translation gain is $500,000.

translation gain

The gain that results when a firm translates amounts stated in one currency into terms of another currency. A U.S. company that translates German marks into U.S. dollars following a period of a weakening dollar will report a translation gain because the marks exchange for a greater number of dollars.
References in periodicals archive ?
6 billion partially attributable to the positive impact of a translation gain, the inclusion of the Nigerian business as well as AFGRI Equipment in Zimbabwe and AFGRI Milling s inclusion for a full year.
This includes $340 million it spent on tax on foreign currency translation gain, AP reported.
Partially offsetting the transaction loss, the company incurred a translation gain of $17,9.
The resulting gains or losses are reported as translation gain or loss in THE's income statement.
Management believes that net income per share before the impact of foreign currency translation gain or loss is an important measure.
74 per diluted share, which includes a non-operating, non-cash foreign exchange translation gain of $39.
The Company believes excluding gain from foreign currency translation and its related tax effect from its non-GAAP financial measures is useful for its management and investors as such translation gain is not indicative of the Company's core business operations and will not result in cash settlement nor impact the Company's cash earnings.
Pro forma earnings per share excludes the impact of foreign currency translation gain or loss.
5 million pre-tax foreign currency translation gain.
0001 Retained Additional Earnings Number Common Paid-in Unrestricted of shares stock capital earnings BALANCE, January 31, 2009 $25,040,000 $2,504 $25,924,007 $28,570,948 Cumulative effect of reclassification of warrants -- -- -1,058,702 -420,070 Shares issued to settle liquidated damage payable 48,438 5 216,999 -- Stock issued for service 2,000 -- 8,960 -- Imputed interest on advances from a shareholder -- -- 13,557 -- Net income -- -- -- 22,330,200 Allocation to statutory reserve -- -- -- -2,477,427 Foreign currency translation gain -- -- -- -- BALANCE, June 30, 2009 (Unaudited) $25,090,438 $2,509 $25,104,821 $48,003,651 Stock compensation expense -- -- 38,425 -- Non cash exercise of warrant at $5.
Pro forma EPS excludes the impact of foreign currency translation gain or loss and the 2008 gain on sale of TeleAtlas N.
The following table contains a reconciliation of GAAP net income per share to net income per share excluding the impact of foreign currency translation gain or loss.
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