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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Adjusted net income is calculated by adjusting the net income as recorded in the consolidated statements of income for foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments.
This result includes non-cash foreign currency translation gains on deferred tax liabilities and non-recurring tax gains of $11.8 million ($0.05 per share) and non-cash foreign currency translation gains, mark-to-market adjustments and derivative gains on financial instruments of $4.1 million ($0.01 per share).
Fees and commissions, trading income and currency translation gains were notable contributors to non-interest operating income.
Banks' net foreign positions can also be affected by mismatches between the currencies in which their assets and liabilities are denominated, resulting in translation gains or losses.
MLIC has benefitted from notable unrealised fair value gains and foreign currency translation gains since the Egyptian pound was freely floated in November 2016.
Banks benefited also from substantial balance sheet growth last year thanks to translation gains that boosted asset and deposit growth," Beltone explained.
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.
Shareholders' equity at September 30 stood at $2.106 billion, compared to $2.043bn 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.
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.
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.
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.
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