Our foreign currency exposures were principally euros

Assignment Help Finance Basics
Reference no: EM13945388

Our foreign investments and foreign subsidiaries generally report their earnings in their local currencies. We translate our share of their foreign assets and liabilities at exchange rates in effect at the balance sheet dates. We translate our share of their revenues and expenses using average rates during the year. The resulting foreign currency translation adjustments are recorded as a separate component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Gains and losses resulting from exchange-rate changes on transactions denominated in a currency other than the local currency are included in earnings as incurred. We have also entered into foreign currency contracts to minimize our exposure to risk of adverse changes in currency exchange rates. We are subject to foreign exchange risk for foreign currency-denominated transactions, such as debt issued, recognized payables and receivables and forecasted transactions. At December 31, 2007, our foreign currency exposures were principally Euros, British pound sterling, Danish krone and Japanese yen.

Rewrite the footnote based upon the GAAP of Switzerland 

Reference no: EM13945388

Questions Cloud

Based on current dividend yields and expected capital gains : Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 13.1% and 16.5%, respectively. The beta of A is .8, while that of B is 1.8.  If you currently hold a market index portfolio, what woul..
Psychosocial development, the approach that encompasses : The below assignment has been written by another student. Please read it very carefully and reply to it by providing at least 250 meaningful words, APA format, at least one in-text cite and from at least one academic resource. Textbook-Broderick, ..
Homewood suites operates a regional hotel chain : Homewood Suites operates a regional hotel chain. Each hotel is operated by a manager and an assistant manager/controller. Many of the staff who run the front desk, clean the rooms, and prepare the breakfast buffet work part-time or have a second job,..
What looping structure is being used : What variables are used this module? What are their data types?
Our foreign currency exposures were principally euros : At December 31, 2007, our foreign currency exposures were principally Euros, British pound sterling, Danish krone and Japanese yen.
How would you use these cash flows in valuation : Explain how derivative securities are used to find certainty equivalent cash flows. How would you use these cash flows in valuation?
What is your net gain or loss on this investment : You wrote ten call option contracts on JIG stock with a strike price of $41 and an option price of $.60. What is your net gain or loss on this investment if the price of JIG is $46.05 on the option expiration date?
Integer linear programming model to assist park management : Formulate and solve an integer linear programming model to assist the park’s management to plan and schedule the number of new employees it hires each week in order to minimize the total number of new employees it must hire during the summer. It may ..
Pharmacotherapy for endocrine and musculoskeletal disorders : Patients with endocrine and musculoskeletal disorders often require long-term treatment and care resulting in the need for extensive patient education. By appropriately educating patients, advanced practice nurses can assist patients with the mana..

Reviews

Write a Review

Finance Basics Questions & Answers

  The bank compounds interest

Assume that 1 year from now; you will deposit $1,000 into a savings account that  pays 8%. a. If the Bank compounds interest annually, how much will you have in your account 4 years from now?

  Ethical implications of financial decisions

Based on your own experience and knowledge, develop conclusions and explain the ethical implications of financial decisions within an organization. You may need to do additional research on the implications of using insider information (for exampl..

  A new common stock issue that paid a 176 dividend last

a new common stock issue that paid a 1.76 dividend last year the firms dividends are expected to continue to grow at

  What is the irr for the gold mine

the cash inflows are projected to grow at 2 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $119,000 at the end of year 11.

  Find new value of the portfolio

Suppose you are planning how to invest part of your retirement savings. You have decided to put $200,000 into three stocks: 50 percent of the money in GoldFinger.

  What is meant by an internal capital market when would you

what is meant by an internal capital market? when would you expect such a market to add value? when and why would it

  Peleh writes a put option on japanese yen with a strike

peleh writes a put option on japanese yen with a strike price of 0.008yen at a premium of 0.0080cents per yen and with

  Estimate the average annual return you would have made on

unicom is a regulated utility serving northern illinois. the following table lists the stock prices and dividends on

  Risk from holding swap with short term interest rates

A bank purchases an interest rate swap, exchanging a fixed interest rate of 8% for a floating interest rate of LIBOR + 120 basis points, on a notional principal of £200mn. There is no arrangement fee.

  At the hard rock cafe like many organizations project

at the hard rock cafe like many organizations project management is a key planning tool. with hard rocks constant

  Calculation of operating income and ebit

Calculation of operating income, EBIT and dividend per share - What was the firm's operating income, or EBIT and What dividend per share should the company declare

  Develop a comprehensive growth matrix for your organization

1. develop a comprehensive growth matrix for your organization based on the readings for this module.2. does the growth

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd