1. Foreign Exchange
... . It refers to the risk associated with the change in the exchange rate between initiates a transaction and settles it. The resulting gain or loss is called the transaction exposure. Translation or accounting exposure - it is the exposure on assets and liabilities appearing in the Balance Sheet but yet to be liquidated. These items have to be restated in the home ... currency as per the Accounting Standard prescribed. RBI has also given guidelines for translation. This gives rise to gains or losses and has tax implications. This type of exposure is mainly faced by the multinational c...
- Word Count: 10026
- Approx Pages: 40
- Grade Level: High School