| Method | Current method | Temporal method |
| Nonmonetary assets | (C) | (H) |
| Nonmonetary liabilities | (C) | (H) |
| Monetary assets | (C) | (C) (*) |
| Monetary liabilities | (C) | (C) (*) |
| Equity | (H) | (H) |
| Exposure | Equity (H) Assets (C) = Liabilities (C) + Equity (H) + Translation gain or loss | Cash and accounts receibable - Current liabilities - Long-term debt >0: Net monetary assets <0: Net monetary liabilities |
(H) Historical exchange rate
(C) Current exchange rate
(*) Only the monetary assets and liabilities are exposed to changing exchange rates.
Since very few assets are considered to be monetary (mainly cash and receivables), most firms have net monetary liability exposures.
| Net monetary exposures | FC appreciation | FC depreciation |
| Liabilities | loss | gain |
| Assets | gain | loss |
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