Translation Exposure

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Dictionary Says

Definition of 'Translation Exposure'

The risk that a company's equities, assets, liabilities or income will change in value as a result of exchange rate changes. This occurs when a firm denominates a portion of its equities, assets, liabilities or income in a foreign currency.


Also known as "accounting exposure".
Investopedia Says

Investopedia explains 'Translation Exposure'

Accountants use various methods to insulate firms from these types of risks, such as consolidation techniques for the firm's financial statements and the use of the most effective cost accounting evaluation procedures. In many cases, this exposure will be recorded in the financial statements as an exchange rate gain (or loss).
Search results for

'Translation Exposure'

  • Donaldson Growth Machine Grinding To A Halt?

    http://stocks.investopedia.com/stock-analysis/2008/Donaldson_Growth_Machine_Grinding_To_A_Halt_DCI_REV.aspx
    ... Currency Tailwind The company received a lift in earnings and sales due to currency
    translation exposure, which increased sales by $37.9 million, or 7.2%, in ...

  • Forex Minis Shrink Risk Exposure

    http://www.investopedia.com/articles/forex/08/mini-lot.asp
    ... traders do not want to stomach the risk that comes with the exposure of a ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • Corporate Currency Risks Explained

    http://www.investopedia.com/articles/forex/09/corporate-currency-risks.asp
    ... year two, this would create a cash flow impact and the translation risk would ... the
    same home currency) and the company would still have an exposure to economic ...

  • 4 Misconceptions That Sink Emerging Market Investors

    http://www.investopedia.com/articles/basics/12/misconceptions-sink-emerging-market-investors.asp
    ... standards from slipping just because a foreign business offers overseas exposure. ...
    Transaction, translation and economic risks can affect a company's balance ...

  • Nu Skin Shedding Market's Troubles

    http://stocks.investopedia.com/stock-analysis/2011/Nu-Skin-Shedding-Markets-Troubles-NUS-AVP-EL-WTW-HLF0921.aspx
    ... Revenues rose 9% quarter over quarter to $424 million, aided by an 8% foreign currency
    translation. Nu Skin's significant exposure to healthier Asian economies ...

  • 5 Reasons To Avoid Index Funds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/5-reasons-to-avoid-index-funds.asp
    ... 4. Limited Exposure To Different Strategies. ... Transaction, translation and economic
    risks can affect a company's balance sheet. Read More ยป; ...

  • 5 Big Stocks: The Rest Of The Earnings Story

    http://stocks.investopedia.com/stock-analysis/2009/5-Big-Stocks-The-Rest-Of-The-Earnings-Story-OSTK-LII-BA-PFE-PEP0724.aspx
    ... It's clearly becoming a problem for companies with major overseas market exposure.
    (Transaction, translation and economic risks can affect a company's balance ...

  • An Evaluation Of Emerging Markets

    http://www.investopedia.com/articles/07/emerging_markets.asp
    ... employing a wide range of asset classes and means of investment exposure. ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • Using Currency Correlations To Your Advantage

    http://www.investopedia.com/articles/forex/05/051905.asp
    ... move in relation to each other so traders can better understand their exposure. ...
    Transaction, translation and economic risks can affect a company's balance sheet ...

  • Downside Risk At Mead Johnson

    http://stocks.investopedia.com/stock-analysis/2010/Downside-Risk-At-Mead-Johnson-MJN-BMY-NSRGY-DANOY0202.aspx
    ... improved a modest 1% to $714.4 million as pricing and currency translation gains
    offset ... such, Mead Johnson is the only pure-play option to gain exposure to the ...

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