Definition

Accounting Exposure

Accounting Exposure, also called translation exposure, is the potential for accounting-derived changes in owner’s equity to occur because of the need to “translate” foreign currency financial statements of foreign subsidiaries into a single reporting currency to prepare worldwide consolidated financial statements.

Share it:  Cite

More from this Section

  • Agency offices
    Agency offices is the International banking offices that provide credit and other nondeposit ...
  • Bailout bond
    Bailout bond is a bond issued by the Resolution Funding Corporation (Refcorp) to save ...
  • Ratio percentage test
    Ratio percentage test is a test that a qualified pension plan must meet to receive favorable ...
  • Surplus
    Surplus means any agent or sector in the economy (household, business, or government) ...
  • Inverted yield curve
    Inverted yield curve is a yield curve that is downward-sloping. ...