Term
| Foreign currency transactions |
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Definition
| The special accounting valuation and recognition principles associated with accounting for transactions that are recorded in one nation's currency and settled in another nation's currency. |
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Term
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Definition
| The exchange of different currencies at a future point in time, such as in 30 or 180 days. |
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Definition
| The rate of exchange for a currency with delivery, selling, or buying of the currency normally occurring within two business days. |
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Definition
| The difference between a forward rate and spot rate. |
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Definition
| The currency of the primary economic environment in which the entity generates and expends cash. |
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Term
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Definition
| Also called the functional or translation method; used if the functional currency is determined to be the foreign entity's local currency. |
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Definition
| Also called the temporal or remeasurement method; used if the foreign entity's local currency is not the functional currency. |
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Definition
| The risk associated with exchange rate changes. |
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Definition
| The risk that the value of the commitment which is fixed in a foreign currency amount could be adversely affected by subsequent changes in exchange rates. |
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Term
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Definition
| A change in the value of a currency relative to another currency or standard. |
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