Translation Risk

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Dictionary Says

Definition of 'Translation Risk'

The exchange rate risk associated with companies that deal in foreign currencies or list foreign assets on their balance sheets. The greater the proportion of asset, liability and equity classes denominated in a foreign currency, the greater the translation risk. 
Investopedia Says

Investopedia explains 'Translation Risk'

This poses a serious threat for companies conducting business in foreign markets. Exchange rates usually change between quarterly financial statements, causing significant variances between the reported figures. Companies attempt to minimize these transaction risks by purchasing currency swaps or hedging through futures contracts.
Search results for

'Translation Risk'

  • Corporate Currency Risks Explained

    http://www.investopedia.com/articles/forex/09/corporate-currency-risks.asp
    ... Translation Risk A company that has operations overseas will need to translate the
    foreign currency values of each of these assets and liabilities into its ...

  • The Challenging Role Of The Corporate Treasurer

    http://www.investopedia.com/articles/financial-careers/08/corporate-treasurer.asp
    ... Multinational companies also face translation risk in financial reporting when the
    values of their foreign subsidiaries' assets and liabilities fluctuate upon ...

  • Major Blunders In Portfolio Construction

    http://www.investopedia.com/articles/mutualfund/06/portfolioconstruction.asp
    ... whole. However, keep in mind that foreign investments do come with their
    own specific risks, including currency translation risk. (To ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance/prevent-financial-ruin.aspx?lastSlide=1
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance/discretionary-income.aspx
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance/diversification.aspx
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance/unnecessary-strategy.aspx
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... Transaction,
    translation and economic risks can affect a company's balance sheet. ...

  • What Is Your Risk Tolerance? Slideshow | Investopedia

    http://www.investopedia.com/slide-show/risk-tolerance/investing-knowledge.aspx
    ... Ultimately, knowing you risk tolerance - and keeping to investments that fit ... 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
    ... a modest 1% to $714.4 million as pricing and currency translation gains offset ... Stock
    Simulator to trade the stocks mentioned in this stock analysis, risk free! ...

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