It is possible that efforts to decrease translation exposure may result in an increase in transaction exposure.

Translation gains and losses can be quite different from operating gains and losses

If the European subsidiary of a U.S. firm has net exposed assets of euro 500,000, and the euro increases in value from $1.30/euro to $1.35/euro the U.S. firm has a translation ………. .

Under the current rate method, translation gains of losses are reported in an equity reserve account called ………. .

If the British subsidiary of a European firm has net exposed assets of £250,000, and the pound increases in value from euro 1.40/£ to euro 1.45/£, the European firm has a translation………. .

As required by FASB-52, which exchange rate is required to be used to translate assets and liabilities of a foreign entity from its functional currency to the reporting currency?

Gains from forward contracts to hedge translation exposure are taxable whereas losses from hedging translation exposure are not.

Gains from forward contracts to hedge translation exposure are not taxable whereas losses from hedging translation exposure are.

Which of the following firms would NOT bear risk caused by translation exposure?

Trong các phát biểu dưới đây, phát biểu nào sai?

Lãi suất vay VND kỳ hạn một năm là 7,5%/năm, tỷ giá giao ngay là 1 USD = 23.100 VND và lãi suất vay USD kỳ hạn một năm là 4, 8%/năm. Tỷ giá kỳ hạn một năm USD/VND 7 theo IRP là ... CIP