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Basic Question 1 of 2
Accounting (translation) exposure relates to:
B. The risk that fluctuations in foreign exchange rates will cause a loss on the conversion of an asset into $US.
C. Cash gains (losses) arising from the conversion of non-$US denominated asset into $US.
A. The potential that a fraud has occurred and is undetected.
B. The risk that fluctuations in foreign exchange rates will cause a loss on the conversion of an asset into $US.
C. Cash gains (losses) arising from the conversion of non-$US denominated asset into $US.
User Contributed Comments 2
| User | Comment |
|---|---|
| davidt876 | you guys should really replace "$US" with "the company's reporting currency" |
| ashish100 | You should really be thankful to the US and acknowledge its greatness |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe foreign currency transaction exposure, including accounting for and disclosures about foreign currency transaction gains and losses;
analyze how changes in exchange rates affect the translated sales of the subsidiary and parent company;
CFA® 2025 Level II Curriculum, Volume 2, Module 12.