Translation exposure reflects:

Question

Quizplus · Accepted Answer

Translation exposure refers to the risk that a company's financial statements, including assets, liabilities, revenues, and expenses, will be affected by exchange rate fluctuations. This type of exposure arises when a company has foreign subsidiaries or operations that report financial results in a foreign currency, which then must be translated back into the parent company's reporting currency. As exchange rates change over time, the reported value of these foreign assets, revenues, and expenses will also change, potentially impacting the company's financial results and overall value.

Translation Exposure Reflects