Also known as "accounting exposure". It is the effect of fluctuations in exchange rates for the period-end financial statements.
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates. Related: transaction exposure.
in foreign exchange, is to convert the results of foreign operations from the local currency to the home currency in the areas of paper exchange gains or losses; it is retrospective and short-term in nature.
Changes in a corporation's financial statements as a result of changes in currency values.
The calculation of loss or profit resulting from the valuation of foreign assets and liabilities for balance sheet purposes, when consolidating into the base currency.
The risk that a company's equity, assets, or income will change in value as a result of exchange rate changes. Also known as accounting exposure.
The potential negative impacts on a company's reported profits or balance sheet from exchange rate fluctuations. This typically occurs in international corporations when a foreign subsidiary's financial statements (covering profits, assets and liabilities in foreign currency) are converted into the parent company's base currency to consolidate the parent company's financial statements.