translation loss

Translation Loss

The loss that occurs when one exchanges one floating currency for another and then trades back into the first currency after it has become stronger. For example, suppose a person has 1,000,000 U.S. dollars and exchanges them for 500,000 British pounds; this means the exchange rate is two dollars per pound. Later, if that person still has those 500,000 pounds when the dollar has risen (quite dramatically) to one dollar per pound and exchanges them back to dollars, he/she has $500,000 instead of $1 million. In this case, the translation loss is $500,000.

translation loss

The loss that results when a firm translates amounts stated in one currency into terms of another currency. The loss is incurred when the firm translates from a currency that has declined in value relative to the currency into which the amounts are being converted.
References in periodicals archive ?
5 per cent from Q4 2014, mostly a translation loss.
5 per cent from the fourth quarter of last year, mostly a translation loss.
The transaction will in parallel have a negative impact on the income statement in the third quarter due to a translation loss of about SEK 35 million, which was previously recognised in the translation reserve in equity.
In addition, loan volumes were negatively affected during the quarter by the translation loss produced by the deflation (-2.
The twelfth deforming tendency identified by Berman--effacement of the superimposition of languages--is naturally the one that causes the most substantial translation loss.
After sending it to some labels, we got an immediate response from Drew at Translation Loss.
Accumulated foreign exchange translation loss (99,623) (99,808)
The third quarter foreign currency translation loss in Russia was $32 million.
9) million due to the effect of a translation loss resulting from the depreciation of the U.
The reasons behind the better performance in the first quarter of 2014, when compared to the fourth quarter of 2013, were due to a one-time cost related to permanent currency translation loss and impairment of goodwill loaded in the fourth quarter of 2013.
The net loss includes the impact of translation loss resulting from the depreciation of the U.
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