经济风险和会计风险【外文翻译】.doc

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Economic Exposure and Accounting Exposure
Accounting exposure or translation exposure measures how the consolidated fi- nancial statements / accounts of an MNC will be affected by exchange rate fluctua- tions. Accounting exposure does not directly affect cash flows, however. Management of accounting exposure is concerned with the potential impact and stock market implications of consolidated financial accounts arising from the translation of the accounts items of the MNC.
The use of accounting methods has an effect on the degree of accounting expo- sure, as well as the size and activity of foreign subsidiaries. In the following we introduce four accounting methods for translating the accounts and accounts items of a foreign subsidiary of a MNC and their effects on the consolidated accounts of the MNC – the current rate method, the temporal method, the ary/non-ary method and the current/non-current method.
The current rate method is the simplest – all financial statement items are trans- lated at the current exchange rate except equity items. Assets and liabilities are translated at the rate of exchange in effect on the balance sheet date. e statement The e statement refers to the profit/loss account in the UK.
items are translated at either the actual exchange rate on the dates the various revenues, expenses, gains and losses were incurred or at a weighted average exchange rate for the period. Distributions of dividends are translated at the rate in effect on the date of payment. Equity items are translated at the historical rate in effect when the item was first recorded on the account. Gains or losses from translation are closed to an equity reserve account called the cumulative translation adjustment (CTA), and will not appear in the MNC’s consolidated e statement, unless the foreign subsidiary incurring the gain or loss is liquidated. The balance sheet will always be balanced by the CTA with this translation method.
Under the current/non-cur