IAS 39 and Pre-transaction risk: Difference between pages

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International Accounting Standard 39, dealing with financial instruments: recognition and measurement.
''Foreign exchange risk management''


IAS 39 is largely superseded by the revised IFRS 9 'Financial Instruments' which comes into full effect from January 2018.  
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.
* [[ALFV]]
 
* [[Available-for-sale]]
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.
* [[FRS  5]]
 
* [[FRS 26]]
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.
* [[Hedge effectiveness]]
 
* [[Held for trading]]
 
* [[Held-to-maturity]]
2.
* [[HFT]]
 
* [[IAS 18]]
The same as Contingent risk as applied to currency management.
* [[IAS 32]]
 
* [[IFRS  9]]
 
* [[IFRS 9 hedge accounting reforms: a closer reflection of risk management?]]
Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.
* [[International Financial Reporting Standards]]
* [[Loans and receivables]]
* [[MCT]]
* [[Recognition]]




===Other links===
== See also ==
[http://www.treasurers.org/node/3333 IAS 39 implementation experience reported by ACT members, 2005]
* [[Contingent risk]]
* [[Currency risk]]
* [[Economic exposure]]
* [[Transaction exposure]]


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

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

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