The Study of Value Relevance of on Foreign Currency Transaction

The study presents an economic analysis of the foreign translation adjustment and empirically examines the association between change in firm value and the foreign translation adjustment for a sample of manufacturing firms. The study shows that, for firms in the manufacturing sector, the translation adjustment is associated with a loss of value instead of an increase in value. This result stems from the fact that, for firms in the manufacturing sector, the accounting rules governing foreign currency translations generally produce results opposite to the economic effects of exchange rate changes.

Download Full-text

The value relevance of unrealized gains and losses around the financial credit crisis: Evidence from the UK

Corporate Ownership and Control ◽

10.22495/cocv14i1c2p7 ◽

2016 ◽

Vol 14 (1) ◽

pp. 351-359 ◽

Cited By ~ 2

Author(s):

Mohammad Alhadab ◽

Yasean Tahat

Keyword(s):

Foreign Currency ◽

Value Relevance ◽

Credit Crisis ◽

Accounting Standard ◽

Crisis Period ◽

Currency Exchange ◽

Financial Credit ◽

The Uk ◽

Gains And Losses ◽

The Impact

This paper examines the usefulness of the unrealized gains and losses on foreign currency exchange and marketable securities, using a sample of UK non-financial FTSE 350 around the recent financial credit crisis. A number of findings are reported by the current study. First, study finds that the unrealized gains and losses on foreign currency exchange and marketable securities matter when making investment decisions and can explain changes in firms’ market value, however, this relationship becomes more negative post-the crisis period indicating that investors attach some value for such information. Second, the study concludes that investors underestimate the value of firms report unrealized gains and losses in the post-crisis period, confirming the view that these items are considered to be one of the major drivers of the credit crisis. The present articles provides a great deal of implication for national (UK Accounting Standard Board) and international (IASB) accounting regulators about the impact of using unrealized gains and losses of foreign currency exchange and marketable securities.

Download Full-text

DİĞER KAPSAMLI GELİR KALEMLERİ İLE İŞLETMENİN PİYASA DEĞERİ ARASINDAKİ İLİŞKİ

Business And Management Studies An International Journal ◽

10.15295/bmij.v1i3.22 ◽

2014 ◽

Vol 1 (3) ◽

pp. 269

Author(s):

Serhan Gürkan ◽

Yasemin Köse

Keyword(s):

Financial Performance ◽

Value Relevance ◽

Net Income ◽

Comprehensive Income ◽

Income Statement ◽

Other Comprehensive Income ◽

The Difference ◽

Gains And Losses

Other comprehensive income is the difference between net income as in the Income Statement and comprehensive income, and represents the certain gains and losses of the enterprise not recognized in the Profit or Loss Account. Value relevance of other comprehensive income is under discussion and considering other comprehensive income items all together might be misleading for financial performance. In the view of such information, discussing the value relevance of each other comprehensive income item, judgements are made.

Download Full-text

The limit of the contemporary financial system in Russia

National Interests Priorities and Security ◽

10.24891/ni.16.7.1223 ◽

2020 ◽

Vol 16 (7) ◽

pp. 1223-1245

Author(s):

V.V. Smirnov

Keyword(s):

Cluster Analysis ◽

Foreign Currency ◽

Financial System ◽

Descriptive Statistics ◽

High Tech ◽

Monetary Aggregate ◽

Internal System ◽

Monetary Relations ◽

And Cluster Analysis ◽

Structural Preservation

Subject. The article focuses on the modern financial system of Russia. Objectives. I determine the limit of the contemporary financial system in Russia. Methods. The study is based on methods of descriptive statistics, statistical and cluster analysis. Results. The article shows the possibility of determining the scope of the contemporary financial system in Russia by establishing monetary relations as the order of the internal system and concerted operation of subsystems, preserving the structure of the financial system, maintaining the operational regime, implementing the program and achieving the goal. I found that the Russian financial system correlated with the Angolan one, and the real scope of the contemporary financial system in Russia. Conclusions and Relevance. As an attempt to effectively establish monetary relations and manage them, the limit of the contemporary financial system is related to the possibility of using Monetary Aggregate M0 to maintain the balance of the Central Bank of Russia. To overcome the scope of Russia’s financial system, the economy should have changed its specialization, refocusing it on high-tech export and increasing the foreign currency reserves. This can be done if amendments to Russia’s Constitution are adopted. The findings expand the scope of knowledge and create new competence in the establishment of monetary relations, order of the internal system and concerted interaction of subsystems, structural preservation of the financial system and maintenance of its operational regime.

Download Full-text

Features of payments in foreign currency in budgetary institutions

Buhuchet v zdravoohranenii (Accounting in Healthcare) ◽

10.33920/med-17-2004-03 ◽

2020 ◽

pp. 19-28

Author(s):

Larisa Gerasimova

Keyword(s):

Exchange Rate ◽

Foreign Currency ◽

Fair Value ◽

Budgetary Institutions ◽

The Exchange Rate ◽

Monetary Assets ◽

Made In

The article discusses the procedure for accounting for objects in a foreign currency. It is shown that foreign currency assets, liabilities, and other items are recorded simultaneously in foreign currency and in rubles. Analyzed the accounting treatment of exchange rate differences, it is shown that their records depend on the period. Examples of currency monetary and non-monetary accounting items and the specifics of their reflection in accounting transactions are given. Monetary assets and liabilities are recorded at the exchange rate at the date of recognition. The option of recognition at the reporting date is possible. Non-monetary assets and liabilities are recognized at the date of recognition and are no longer restated. An example of accounting for non-monetary assets accepted by an institution at fair value as an exception to their rules is given. The article reflects that the revaluation of such assets at the new exchange rate is made in cases when the fair value of the object changes. It shows the mechanisms for accounting for the return of advances in foreign currency and options when such debt is recalculated or not recalculated after being accepted for accounting.

Download Full-text

Intangibles And Value Relevance Of Accounting Information: Evidence From UK Companies

10.35516/0338-012-002-009 ◽

2016 ◽

pp. 437

Author(s):

كيموش بلال ◽

روابحي عبدالناصر

Keyword(s):

Value Relevance ◽

Accounting Information

Download Full-text