Balance sheet exposure

1. Foreign exchange risk.

Exposure which arises from the process of translating balance sheet items denominated in foreign currency into the group accounts denominated in the parent’s currency.

This is a form of foreign exchange Translation exposure.

2.

More generally, the risk of adverse effects in the balance sheet arising from foreign exchange risk or from other sources.

See also

• Balance
• Balance sheet
• Group accounts
• Income statement exposure
• Translation exposure