ch10MEASURING ACCOUNTING EXPOSURE(跨国公司财务管理Joseph F. Greco)概要1.ppt

Multinational Financial Management Alan Shapiro7th Edition J.Wiley Sons Power Points by Joseph F. Greco, Ph.D. California State University, Fullerton CHAPTER 10 MEASURING ACCOUNTING EXPOSURE CHAPTER OVERVIEW I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE II. ALTERNATIVE CURRENCY TRANSLATION METHODS III. STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.52 CHAPTER OVERVIEW (con’t) IV. TRANSACTION EXPOSURE V. DESIGNING A HEDGING STRATEGY VI. MANAGING TRANSLATION EXPOSURE VII. MANAGING TRANSACTION EXPOSURE PART I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE A. Three Types of Exposure 1. Accounting Exposure: when reporting and consolidating financial statements requires conversion from foreign to local currency. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE 2. Transaction Exposure: occurs from changes in the value of foreign currency contracts as a result of exchange rate changes. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE 3. Operating Exposure arises because exchange rate changes may alter the value of future revenues and costs. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE Economic Exposure = Transaction + Operating Exposures PART II. ALTERNATIVE CURRENCY  TRANSLATION METHODS I. FOUR METHODS OF TRANSLATION A. Current/Noncurrent Method 1. Current accounts use current exchange rate for conversion. 2. Income statement accounts use average exchange rate for the period. ALTERNATIVE CURRENCY TRANSLATION METHODS B. Monetary/Nonmonetary Method 1. Monetary accounts use current rate 2. Pertains to - cash - accounts receivable - accounts payable - long term debt ALTERNATIVE CURRENCY TRANSLATION METHODS 3. Nonmonetary accounts - use historical rates - Pertains to inventory fixed assets long term investments 4. Income statement accounts - use averag