accounting exposure

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Accounting exposure

The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Accounting Exposure

The risk that a company may suffer a reduction in value because a change in exchange rates reduces the value of its accounts or assets denominated in foreign currencies. That is, if a particular currency in which a company has some assets denominated decreases in value, the value of those assets also decreases with respect to the company's main currency. See also: Foreign exchange risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

accounting exposure

see EXCHANGE RATE EXPOSURE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
A portion of operating costs is denominated in domestic currencies, but translation risks can still erode reported profits and consequently cash flow.
However, as a result of these investments, exposure to country and foreign exchange translation risks has risen.
On the other hand, sometimes, the errors cannot possibly be remedied, for objective reasons (old texts, long distances etc.), so the translation risks not to be performed.
The company said that it has launched a new passive FX hedging service that has the potential to protect clients' investments against currency translation risks. The company said that the service offers transparent pricing and client-driven execution times, and would allow clients to hedge at different levels of fund hierarchy.
In a tale which can seem so fleeting and intangible, which plays with the reader's ability to grasp the true nature of events, a translation risks either missing the point or seeming too thin.
It should be flexible enough to define the eligibility criteria of various collateral types for the standardized & IRB approaches and the application of haircuts based on volatility of collateral value, maturity mismatches, currency translation risks and exposure value volatility.
Medtronic also looked at adding foreign exchange translation risks to the hodgepodge of covers, but unlike Honeywell, decided against it.
- A degree of FX volatility (particularly emerging-market and USD exposure) resulting in continued FX translation risks.
-A degree of FX volatility (dollar, euro and emerging-market exposure) resulting in continued FX translation risks.
-FX volatility (CHF, EUR, and EM exposure) resulting in continued FX translation risks.

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