accounting exposure(redirected from Translation Risks)
The change in the value of a firm's foreign currency-denominated accounts due to a change in exchange rates.
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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.
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accounting exposuresee 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