1. Foreign Exchange
... 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 ... of local currency per U.S. dollar. Future contracts are quoted in American terms (dollars per one local currency unit). There are other hedging instruments which are available in the market to cover the exchange r...
- Word Count: 10026
- Approx Pages: 40
- Grade Level: High School