Ch Management of Translation Exposure【DOC精选】.docVIP

Eun Resnick 4e CHAPTER 10 Management of Translation Exposure Translation Methods Current/Noncurrent Method Monetary/Nonmonetary Method Temporal Method Current Rate Method Financial Accounting Standards Board Statement 8 Financial Accounting Standards Board Statement 52 The Mechanics of the FASB 52 Translation Process Highly Inflationary Economies CASE APPLICATION: Consolidation of Accounts according to FASB 52: The Centralia Corporation Management of Translation Exposure Translation Exposure versus Transaction Exposure Hedging Translation Exposure Balance Sheet Hedge Derivatives Hedge Translation Exposure versus Operating Exposure Empirical Analysis of the Change from FASB 8 to FASB 52 Summary MINI CASE: Sundance Sporting Goods, Inc. Translation Methods Translation exposure refers to: accounting exposure the effect that an unanticipated change in exchange rates will have on the consolidated financial reports of an MNC the change in the value of a foreign subsidiaries assets and liabilities denominated in a foreign currency, as a result of exchange rate change fluctuations, when viewed from the perspective of the parent firm all of the above Answer: d) The recognized methods for consolidating the financial reports of an MNC are: short/long term method, current/future method, flexible/inflexible method, and economic/noneconomic method current/noncurrent method, monetary/nonmonetary method, short/long term method, and current/future method current/noncurrent method, monetary/nonmonetary method, temporal method, and current rate method temporal method, current rate method, flexible/inflexible method, and economic/noneconomic method Answer: c) How many method of foreign currency translation have been used in recent years? (U.S. GAAP.) One Two Three Four Answer: d) The difference between accounting exposure and translation exposure Translation is about going from one language to another, accounting is just about the numbers. Accounting exposure and translat