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Basic Question 1 of 2

Accounting (translation) exposure relates to:

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
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Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

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® 2024 Level II Curriculum, Volume 2, Module 13.