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.

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.

Fresh investments pulled down MPIC profit in H1

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.

3M deconsolidates Venezuelan subsidiary as of May 31

This was compounded by forex translation losses for the year.

SMC posts flat profit at P55.2B in 2018

Its Fitch Core Capital Ratio (end-2017: 14.4%) remains highly sensitive to foreign currency translation losses on foreign operations.

Fitch Affirms Ecobank Transnational Inc at 'B'; Outlook Stable

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.

Walmart Sells Majority Of Brazil Unit, Takes $4.5 Billion Charge

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.

Bye bye Goldilocks, investors are headed into a reflationary scenario

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.

ADCB posts a reports a net profit of AED 2.11 billion for the first half of 2017

"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.

Bank Audi profits soar 15 pct in first nine months of 2016

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.

CI affirms Commercial Bank's financial strength rating at 'A-'

"The hit to earnings from currency translation losses has certainly been a factor in multinationals' earnings for well over a year now."

Focus on Hedging amid Volatile Markets

Organic sales improved 10.2 percent, despite 3.3 percent in foreign exchange translation losses, while acquisition growth added 5.6 percent.

RPM reports Q4 and year-end results for fiscal 2012; reports sharp gain in sales and income