CFAB and Currency risk: Difference between pages

Revision as of 17:47, 20 April 2014

The risk that arises from a change in currency rates.

This can take the form of:

A receipt/payment of more or less home currency than expected when a transaction is settled (transaction risk)
A change in asset/liability values in a balance sheet, profit /loss in an income statement (translation risk), or
A change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).

A more complex area of risk concerns contingent, or pre-transaction risk.

Also known as Currency exposure or Foreign exchange risk.

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-The Certificate in Finance, Accounting and Business, awarded by the Institute of Chartered Accountants in England and Wales (ICAEW).
+The risk that arises from a change in currency rates.
-The CFAB can be used as a stepping stone to the ICAEW's full ACA qualification.
+This can take the form of:
+#A receipt/payment of more or less home currency than expected when a transaction is settled (transaction risk)
+#A change in asset/liability values in a balance sheet, profit /loss in an income statement (translation risk), or
+#A change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).
+A more complex area of risk concerns contingent, or pre-transaction risk.
+Also known as Currency exposure or Foreign exchange risk.
 == See also ==
-* [[ACA]]
+* [[Contingent risk]]
-* [[Chartered Accountant]]
+* [[Cross-currency interest rate swap]]
+* [[Foreign exchange risk]]
+* [[Transaction exposure]]
+* [[Translation exposure]]
+==Other links==
+[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009]
-[[Category:Self_management_and_accountability]]
+[[Category:Manage_risks]]
-[[Category:Knowledge_and_information_management]]
-[[Category:The_business_context]]