IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-07442-6_9.html
   My bibliography  Save this book chapter

Foreign Currency Translation

In: International Financial Reporting

Author

Listed:
  • S. J. Gray

    (University of Glasgow)

  • L. G. Campbell

    (Deloitte Haskins Sells)

  • J. C. Shaw

    (Deloitte Haskins Sells)

Abstract

The rising level of international trade and investment in recent years means that companies are becoming increasingly exposed to foreign exchange risks, arising from two distinct sources:- (a) foreign currency transactions (such as sales and purchases giving rise to debtors and creditors, or the lending and borrowing of funds), whose home currency value may fluctuate between the date the transaction occurred and the date of final settlement; and (b) foreign operations conducted through foreign subsidiaries, where the home currency value of assets and liabilities (recorded in the subsidiary’s book in a foreign currency) may fluctuate. The first source of foreign exchange risk (ie. at the individual entity stage) gives rise to several issues, namely what items (if any) should be retranslated at the balance sheet date if currency movements have occurred, whether exchange gains or losses on such retranslation should be taken to the income statement, and whether exchange gains or losses arising on final settlement of the transaction should be taken to the income statment.

Suggested Citation

  • S. J. Gray & L. G. Campbell & J. C. Shaw, 1984. "Foreign Currency Translation," Palgrave Macmillan Books, in: S. J. Gray & L. G. Campbell & J. C. Shaw (ed.), International Financial Reporting, chapter 0, pages 331-356, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07442-6_9
    DOI: 10.1007/978-1-349-07442-6_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-07442-6_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.