IAS 29 and Pre-transaction risk: Difference between pages

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International Accounting Standard 29, dealing with financial reporting in hyperinflationary economies.
''Foreign exchange risk management''


Issued by the International Accounting Standards Board.  
1.


Pre-transaction foreign exchange risk arises from needing to commit to a price before actually entering into transactions or commercial agreements.


== See also ==
For example, an exporter may need to publish a price list in the currency of its customers' local market.
* [[FRS 102]]
 
* [[International Financial Reporting Standards]]
Pre-transactional currency exposure also exists when an organisation tenders for a contract priced in a foreign currency, or where there are associated foreign currency costs, for example for materials, labour or other operational inputs.
 
Some practitioners do not identify pre-transaction risk as a separate class of risk, rather considering it to be a shorter-term type of economic exposure.
 
 
2.
 
The same as Contingent risk as applied to currency management.
 
 
Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.




== External link ==
== See also ==
*[https://www.iasplus.com/en/standards/ias/ias29 IAS 29 - IAS Plus]
* [[Contingent risk]]
* [[Currency risk]]
* [[Economic exposure]]
* [[Transaction exposure]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]

Revision as of 15:47, 17 March 2017

Foreign exchange risk management

1.

Pre-transaction foreign exchange risk arises from needing to commit to a price before actually entering into transactions or commercial agreements.

For example, an exporter may need to publish a price list in the currency of its customers' local market.

Pre-transactional currency exposure also exists when an organisation tenders for a contract priced in a foreign currency, or where there are associated foreign currency costs, for example for materials, labour or other operational inputs.

Some practitioners do not identify pre-transaction risk as a separate class of risk, rather considering it to be a shorter-term type of economic exposure.


2.

The same as Contingent risk as applied to currency management.


Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.


See also