What factors create a foreign exchange gain on a foreign currency transaction? What factors create a foreign exchange loss?

Q: A) What is the geographical location of the foreign exchange market? B) What are the two main types…

A: Foreign exchange market is the market for trading in currencies. It is the largest and the most…

Q: What is meant by Foreign Exchange Markets?

A:

Q: What adjustments might be made due to exchange rate riskand political risk to the domestic cost of…

A: The question is based on the concept of international risk management in cost of capital. An…

Q: How does the timing of hedges of (a) foreign currency denominated assets and liabilities, (b)…

A: The three terms are differentiated based on the time when the price or the foreign exchange rate is…

Q: What can be understood from Foreign Exchange Rates?

A: Foreign exchange rate: A foreign exchange rate is the comparative value among two currencies. Merely…

Q: what is Accounting for Foreign Currency Transactions

A: A transaction is said to be a foreign currency transaction when such transaction takes place between…

Q: How much is the net foreign exchange gain (loss), recognized in surplus or deficit from the…

A: When an entity purchases on account in foreign currency, then they have to revalue that foreign…

Q: What is the rationale for the remeasurement of foreign currency transactions?

A: Remeasurement: Remeasurement refers to re-evaluation of a physical asset or foreign currency in the…

Q: What causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet…

A:

Q: Define short exposure and explain the relationship between the variability of the domestic currency…

A: Domestic currency is referred to as the legal tender in an economy as well as issuance through the…

Q: Define foreign currency hedges.

A: Definition:   Hedge: The process through which the risk associated with a particular project, can be…

Q: What are some of the transactions or activities that results in the demand of foreign currency

A: In an economy or in a country there are different economic and commercial transactions that lead to…

Q: What is foreign currency?

A: In terms of finance, foreign currency is a familiar term in FOREX (Foreign Exchange) transactions.

Q: WHAT ARE THE FEATURES AND TYPES OF FOREIGN TRADE?

A: Foreign trade are the trade between two or more countries.there are generally two types of trade…

Q: Would exchange rate changes always increase the risk of foreign investment

A: No, it is not necessary that the exchange rate changes always increse the risk of foriegn…

Q: hedging arrangement and how does it reduce foreign currency risk exposure

A: Foreign currency risk can be defined as the risk of change in the exchange rate of a foreign…

Q: chains of events affected the Foreign Exchange Rates long term and short term

A: Factors affecting foreign exchange rates in short term: Interest rates: depreciation or appreciation…

Q: In accounting for foreign currency transactions, which of the following approaches is used in the…

A: Answer:   Option d.

Q: Do you think Balance of Payment and its different components have any role in determining the…

A: Balance of Payments: It is the difference in the money flowing in the country & the money…

Q: Explain how exchange rate fluctuations affect the return from a foreign market measured in dollar…

A: Introduction: Exchange rate is nothing but the country’s price expressed in terms of another…

Q: “Investors engage in forward exchange transactions to hedge against foreign currency risk. EXPLAIN…

A: A futures contract is a customized contract between two parties to buy or sell an asset at a price…

Q: What is meant by spot rate in case of foreign currency transaction?

A: Spot rate is the rate at which currencies can be exchanged right away. It is the current market…

Q: How do you determine and calculate return and risk on foreign exchange transactions

A: Foreign exchange transactions are those transactions which are undertaken between citizens of one…

Q: characterize foreign currency transaction risk, including accounting for and disclosing profits and…

A: You must use an international commerce channel if you wish to purchase or sell anything in another…

Q: Explain about the hedging against the foreign currency risk.

A: Foreign exchange refers to the trading of currency of one country with the currency of another…

Q: What is the effect of external transfers from expatriate employment on maintaining the stability of…

A: WHAT IS REMITTANCE? Remittance is an installment of cash that is moved to another gathering.…

Q: does it reduce forei

A: Financial instruments can be regarded as capital bundles that can be traded, or as assets that can…

Q: exchange rate regime,

A: The exchange rate refers to the price of the money of a country and relates to the value of…

Q: What is that determines the relationship between spot abd forward foreign exchange rates?

A: The exchange rate between two currencies is the number of units of one currency per unit of the…

Q: What is the importance of Foreign Exchange Market?

A: Foreign exchange markets commonly known as Forex markets are mainly concerned with purchasing and…

Q: what are implications for analysis of financial statements that result from the accounting for…

A: As per IAS 21 if any has an operation in a foreign country then the financial statements of such an…

Q: Explain what is a hedging arrangement and how does it reduce foreign currency risk exposure?

A: Hedging is an arrangement made to reduce the risk of foriegn exchange. It is a strategy to offset…

Q: Explain fully why and how government intervenes in the foreign exchange market?

A: Foreign exchange intervention comes when a central bank or the government may assess that its…