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imported>Doug Williamson |
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| The risk of losses or other adverse effects resulting from a change in a foreign exchange rate, or from other unfavourable changes in relation to a foreign currency.
| | A form of cross-border tax avoidance, or tax planning, which takes advantage of differences in tax between different jurisdictions. |
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| Examples include:
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| (i) a final receipt/payment of a different amount of domestic currency equivalent, than expected when a currency transaction was committed to (transaction risk), or <br>
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| (ii) a change in asset/liability values in a balance sheet, profit/loss in an income statement (translation risk), or <br>
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| (iii) a change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).
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| A more complex area of foreign exchange risk concerns contingent, or pre-transaction risk.
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| Also known as Currency exposure or Foreign exchange risk.
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| == See also == | | == See also == |
| * [[Contingent risk]] | | * [[Arbitrage]] |
| * [[Cross-currency interest rate swap]] | | * [[Common Consolidated Corporate Tax Base]] |
| * [[Currency management]]
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| * [[Foreign exchange risk]]
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| * [[Transaction exposure]]
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| * [[Translation exposure]]
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| ===Other links===
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| [http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009]
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| [[Category:Manage_risks]]
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Revision as of 09:33, 8 April 2015
A form of cross-border tax avoidance, or tax planning, which takes advantage of differences in tax between different jurisdictions.
See also