January 2018 Lease Accounting Exposure
That is a pure accounting exposure companies have on operations or business outside of their home country," he said.
Companies don't want to spend real dollars to hedge what are basically accounting exposures.
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
Strategic foreign currency management differs from traditional accounting exposures
because strategic foreign currency management becomes an integral part of a business's operations and requires the combined efforts of operating and financial functions to identify currency risks and opportunities.
For the hedging of accounting exposures
, foreign currency debt and currency forwards represent the most popular risk management instruments.
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.