Journal ArticleDOI
Foreign Exchange Accounting of Multinational Corporations
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TLDR
The first statement of accounting principles issued by the Financial Accounting Standards Board (FASB) provides analysts with the opportunity to explore in detail the impact on the financial statements of major multinational corporations of income statement and balance sheet translation of their foreign subsidiaries.Abstract:
The first statement of accounting principles issued by the Financial Accounting Standards Board (FASB) provides analysts with the opportunity to explore in detail the impact on the financial statements of major multinational corporations of income statement and balance sheet translation of their foreign subsidiaries. The combination of floating exchange rates and the importance of multinational corporations earning a significant portion of their income overseas makes necessary an examination of the stability and recurring nature of reported profits from this source. This article analyzes the accounting options available to and used by specific firms with respect to the translation of their foreign income statements and balance sheets.read more
Citations
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Journal ArticleDOI
Management of Foreign Exchange Risk: A Review Article
TL;DR: This article reviewed the literature on Foreign Exchange Risk Management (FERM) which has burgeoned during the last decade and identified gaps in the existing literature and suggests directions for future research.
Journal ArticleDOI
The impact of SFAS no. 8 on equity prices of early and late adopting firms
TL;DR: This article examined the economic consequences of Statement of Financial Accounting Standards No. 8 and found that early adopters and late adopters exhibited significantly negative excess returns in the Exposure Draft release period, even after adjusting for a size effect in January.
Journal ArticleDOI
An Empirical Analysis of Current US Practice in Evaluating and Controlling Overseas Operations
Orapin Duangploy,Dahli Gray +1 more
TL;DR: This article examined whether US based multinational managers used different techniques for evaluating and controlling foreign operations during the late 1980s than they used in the late 1970s and early 1980s and found that managers continued to emphasise profit as the primary basis of evaluating and managing foreign operations.
Journal ArticleDOI
Translation of Financial Statements
TL;DR: In this paper, the effects of accounting procedures which are closely related to groups of companies operating multinationally were surveyed and critically analyzed for translation of financial statements, eg the Temporal and the Closing Rate Methods, as far as those methods are embodied in accounting standards which have been either recommended or adopted by countries such as the UK and US.
Book ChapterDOI
CHAPTER 24 – Management of foreign exchange risk: a review article*
TL;DR: This paper reviewed the literature on Foreign Exchange Risk Management (FERM) which has burgeoned during the last decade and identified gaps in the existing literature and suggests directions for future research.