Translation exposure,
A)is not entity specific, rather it is currency specific.
B)is not currency specific, rather it is entity specific.
C)involves restatement from Italian to French.
D)none of the above

Question

Quizplus · Accepted Answer

Translation exposure refers to the risk that a company's financial statements may be impacted by changes in foreign exchange rates when they are translated into a different currency. It is not entity specific as it can affect any company that operates in different currencies, but it is currency specific as it only arises due to changes in exchange rates between the currencies involved. Therefore, option A is the correct answer.

Translation Exposure