المساعد الشخصي الرقمي

مشاهدة النسخة كاملة : International financial reporting technical topics



محاسب متخصص
03-24-2014, 02:07 PM
Subsidiary. It also reduces the value of its profits and cash flows. Any cash flows from the U.S. subsidiary to the japanese parent company would buy fewer yen at the new exchange rate.
Buyers and sellers of foreign goods and services are also exposed to foreign currency risk when the exchange rate changes between the transaction date and the settlement date. The following two sections discuss the transaction risk exposure and translation risk exposure in greater detail.
Transaction Risk Exposure
Foreign currency transactions require settlement in a foreign currency. This has implications for future cash flows. The transactions risk exposure is caused by the changes in the exchange rate between the transaction date and the settlement date. Only one of the two parties to the transaction is exposed.
Assume that an egyptian company buys goods from a dutch supplier and is required to pay at a later date in a dutch guilders. The egyptian buyer faces transaction risk exposure while the dutch supplier does not. If the contract requires payment in egyptian pounds, then dutch supplier is the party facing a transaction risk exposure.
Example