translation gain

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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 ?

5 billion, largely driven by significant unrealized gains, with smaller contributions from positive net earnings, pension adjustment gains and foreign currency translation gains.

Fitch Affirms FM Global's IFS Ratings at 'AA'

MLIC has benefitted from notable unrealised fair value gains and foreign currency translation gains since the Egyptian pound was freely floated in November 2016.

A.M. Best affirms credit ratings of Misr Life Insurance Company

Banks benefited also from substantial balance sheet growth last year thanks to translation gains that boosted asset and deposit growth," Beltone explained.

Banks stocks remain investors' best choice to inject cash after interest rate hikes: fund manager at Franklin Mena

of taxable currency translation gains reported by LUKOIL's Russian subsidiaries and the tax effect on the disposal of 10% of the company's share in KPO (Karachaganak Petroleum Operating), which amounted to $148mn.

ATON - Daily Dashboard, Oil and Gas - Sep 3, 2012

Arab Banking posted shareholders' equity to $3,599 million on 30 June, than $3,486 million in the same period last year, due to growth in fair values of non-trading securities, exchange translation gains on foreign subsidiaries and net profit.

BAHRAIN : Arab Banking Corp. reports $68 million in Q2 net profit

043bn at the end of the second quarter, the increase coming from improvement in fair values of non-trading securities, exchange translation gains on foreign subsidiaries as well as the profit for the period.

ABC posts $80m profit

Shareholders' equity at 30 September 2009 stood at $2,106 million, compared to $2,043 million at the end of the second quarter, the increase coming from improvement in fair values of non-trading securities, exchange translation gains on foreign subsidiaries as well as the profit for the period.

Arab Banking Corporation (ABC) announces nine-month profit of $80 million

Through the first half of 2008, the dollar was relatively weak and companies with overseas operations were enjoying strong translation gains from overseas revenue that wasn't hedged, Bond reports.

All eyes on FX risk: as turbulence rocks the currency markets, companies look to new tools to find hidden exposures and new tactics for hedging

It is my wish that, as translation gains more and more visibility through publications such as JIT, the number of participants in this section will also increase, adding a multiplicity of voices to this ancient and dignified art.

Journal of Italian Translation 2.2 (Fall 2007)

The method of SFAS 52 combines conventional, historical costbased asset measurement in the foreign currency with translation at the current rate and deferral of translation gains and losses.

Are financial statements meaningful under exchange rate fluctuations? : financial analysis

Foreign currency translation gains and losses: What effect do they have and what do they mean?

The value relevance of the foreign translation adjustment

Also in both cases, the subsidiaries operated local currency budgets and their managers did not need to be concerned about translation gains and losses, despite the fact that these had an impact on final group profits.

Double trouble: how can two successful businesses seem to be worth less than the sum of their parts once they merge? Although companies persist in making them, cross-border acquisitions all too often fail to add much value. To determine whether this can be attributed to the problems of establishing suitable management controls, Tony Appleyard and Simon Pallett review the evidence from two Anglo-German case studies. (Business Mergers)