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