translation loss

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

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.
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 ?
About P745 million of this swing was due to foreign exchange translation losses in 2019.
The charge is non-cash and primarily relates to foreign currency translation losses previously included in accumulated other comprehensive losses associated with foreign currency movements before Venezuela was accounted for as a highly inflationary economy," the filing stated.
This was compounded by forex translation losses for the year.
Its Fitch Core Capital Ratio (end-2017: 14.4%) remains highly sensitive to foreign currency translation losses on foreign operations.
A significant portion of the expected $4.5 billion net loss will be due to foreign currency translation losses, and the final loss could fluctuate significantly due to changes in forex rates up to the closing date, the retailer said.
The main risk is faster-than-expected appreciation of the CNY, which could dent the appetite of Chinese investors for stocks listed overseas due to currency translation losses they would incur.
Non-interest income of AED 1.032 billion was 11 per cent lower year on year, mainly on account of lower net trading income of AED 137 million compared to AED 302 million in H1'16, due to unrealised FX translation losses impacted by the adverse market conditions.
"Bank Audi used a part of the realized exceptional revenues to write off its investments in Syria and Sudan for an amount of $191 million, accounted for under results of discontinued operations, net of tax, of which $136 million of foreign-currency translation losses [are] already accounted for in common equity, which have therefore translated by a similar increase in the Tier 1 capital," the statement said.
The Turkish economy by contrast benefits from low oil prices, but has other economic and political issues that may impact its market -- and therefore the contribution from Abank -- especially when the probability of further foreign exchange translation losses is factored in.
"The hit to earnings from currency translation losses has certainly been a factor in multinationals' earnings for well over a year now."
Organic sales improved 10.2 percent, despite 3.3 percent in foreign exchange translation losses, while acquisition growth added 5.6 percent.
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